IRS Info

What is a 1040-ES Form Irs ?

Q.I received a 1040-ES in the mail today. I am not sure why I am receiving this. Is this a manditory form Irs ? Is it telling me that I made a mistake from last year? I guess I am not sure why I am receiving this form... I have never gotten one of these before.

A.No. For some reason IRS's computers think you'll be making estimated tax payments for 2006 and are sending you the vouchers so they'll get properly credited. You can read about estimated tax requirements in Publication 505. If you're not required to make payments no response to IRS is necessary. You probably had a balance due last year of a significant amount (more than $1000?) and they are just letting you have the option to make quarterly payments toward 2006. It's not mandatory, but if you anticipate being in a balance due situation again, you might be able to avoid underpayment penalties by making quarterly estimated tax deposits. The 1040-ES (as I'm sure you can tell by reading) is used to "estimate" taxes due for the upcoming year. For those who have no income subject to withholding (e.g., self-employed), it is a device to arrive at a reasonable "guess" at taxes due for the upcoming year, and then make periodic payments to avoid an IRS penalty for _underpayment_. If you received an unsolicited form from the IRS, it's likely because you had a large balance of tax due with your 2005 return -- even perhaps owing a penalty. It's simply a courtesy reminder that there's a method to avoid future penalties. If you're employed and having tax w/h, you should take a moment to verify the w/h will be sufficient to avoid penalty. If not, you can submit a new W-4, claiming fewer or no dependents. If, on the other hand, you have considerable income _not_ normally subject to w/h (e.g., stock dividends, interest on CDs, etc.), you may prefer to join the legions of TPs who regularly use the 1040-ES to pay their tax obligation.

Other Questions :

From the Irs : Tax for USA Citizen abroad and 2007 form

I have been living in thailand for over 8 years. I am loaning some money to someone that is in the USA. The money will come from my bank in thailand and the repayments will be paid to my bank in thailand. I don't know much about Irs Tax in 2007...

Does anybody can tell me about Email Irs Scams ?

Does anybody can tell me about Email Irs Scams ?Not a virus this time but an e-mail scam is going around saying they are going to audit you and need your personal information such as SS # within 48 hours. Its just a scam, don't fall for it. ...

Is there an easy/online way to fill out a 1099 Is there an easy/online way to fill out a 1099-2006 Form Irs MISC?

I need to do a 1099-2006-MISC for my attorney. I download the PDF form and instructions from IRS.gov. I can sloppily put the text on each of the copies using Acrobat, but I was wondering if there is some sort of online form filling option?If ...

2006 Irs Rate Tax Questions ?

I do computer consulting work, will that mean the tax need to be paid at 35% rate or the standard 15%. I really do not know how IRS will know if I am Personal service co. My occpuation code is general services on tax form. Does anyone can giv...

Question about "1099 Form Irs Return Tax"

Is there need to file tax return if no income but only $3K unemployment insurance? I heard from 1 source that no file is needed if no income above something like $8000? in new york city. Where can I get 1099 Form Irs Return Tax ?Even when a ret...

 

Submit a IRS Question

Submit an Question

Other IRS Sites

Site Information

About Us
Contact Me
Privacy Policy

Sitemap

©2007 IRS Info All Right Reserved.