Debits Recommended for Estimated Taxes

It took the IRS until February 7, 2025 to issue the 2025 version of Form 1040-ES, Estimated Taxes for Individuals. As a result of this delay, tax software companies will need a few more days before the final version of the voucher is incorporated into tax software packages.

The delay of the availability of the paper form provides a chance to highlight the benefits of using debits to pay estimated taxes instead of using paper vouchers with checks.

Debits can be scheduled for all four quarters of the year in advance, eliminating the chance that clients will forget to make the payments. Debits also eliminate the delays and errors that are associated with mailing paper checks and vouchers. The delivery process can cause payments to be delayed or lost, and IRS processing can cause delays and other errors.

Practitioners should consider recommending the use of debits for estimated taxes to those clients who are still in the habit of paying by check and paper voucher.