TAP 106-024

Form 1040V and Estimated Tax Payments

Issue Statement:

Taxpayers who file Form 1040, U.S. Individual Income Tax Return, showing a balance due, can send the tax payment with the tax return.  However, if the taxpayer needs to make an estimated tax payment as a result of completing the tax return, the estimated tax payment must be sent to a different address than where the tax return is sent.

Goal Statement:

Make it possible for taxpayers to send their tax return, tax payment and first quarter estimated tax payment to the same address.

Proposal:

IRS should eliminate the need to mail tax payments due at the same time to two different addresses using two different payment vouchers and also eliminate the need to mail an estimated tax payment separate from the tax return when there is no tax owed for the current year. 

A line should be added to Form 1040V, Payment Voucher, so the taxpayer can indicate that the first quarter estimated tax payment is included.  Further, the Form 1040V should be renamed the Form 1040V-ES to better describe its new purpose.

The instructions for the new line on the Form 1040V-ES could read: "If you are also making an estimated tax payment for 200_, indicate the amount of the estimated tax payment on Form 1040V-ES.”   In addition, the instructions to the new Form 1040V-ES should be changed to indicate the form can be used when:

• making a payment for a balance due shown on the current year tax return,
• making the April 15th estimated tax payment or
• making a payment for a balance due on the current year tax return and an estimated tax payment.