(a) Except as may be provided by standing order, any tax refund not necessary to pay tax obligations may be first applied to cure any delinquency in the Chapter 13 plan, and the balance of the refund shall be remitted to the debtor.
(b) With respect to all pending Chapter 13 bankruptcy cases:
(1) the Internal Revenue Service is authorized to apply any tax refunds of debtors to the payment of any tax obligations due and owing by the debtors, regardless of whether such tax obligations or tax refunds arose before or after the filing of the case, so long as such tax claims are entitled to priority status under § 507(a);
(2) the terms “taxes” and “refunds” include all penalties and interest associated with taxes and refunds; and
(3) the Internal Revenue Service shall be entitled to charge its normal rate of interest and penalties for tax obligations arising after the filing of the Chapter 13 petition.