Paying your taxes can be done in a variety of ways, and for those who prefer traditional methods or need a secure, paper-based payment option, a money order is a reliable choice. Knowing exactly how to fill out a money order correctly is crucial, especially when it comes to payments to important entities like the U.S. Treasury. This guide will walk you through each step to ensure your tax payment money order is filled out accurately and accepted without any issues.
When you opt to mail in your tax payment, whether it’s for your annual income tax or to respond to an IRS notice, using a money order requires careful attention to detail. Mistakes can lead to delays or even rejection of your payment. Let’s break down the essential steps on how to properly complete a money order for your tax obligations.
First, you’ll need to acquire a money order from a reputable source. These are commonly available at banks, post offices, credit unions, and various retail locations. Once you have your money order in hand, you’ll notice several fields that need to be filled out. Here’s a breakdown of each section and how to complete it specifically for tax payments:
-
“Pay To the Order Of” or “Payee”: This is arguably the most critical part when you fill out a money order for tax purposes. You must make the money order payable to the U.S. Treasury. Write this name clearly and legibly. Using the full and correct name ensures that your payment is correctly directed to the government entity.
-
“Purchaser,” “Sender,” or “From”: This section is for your information. Fill in your name and address. It’s important to use the same name and address associated with your tax documents. Including your daytime phone number here can also be helpful should any clarification be needed. For tax payments, it is also essential to include your Social Security number (SSN), and if it’s a joint return, make sure to put the SSN of the primary taxpayer first. For businesses, you’ll include your Employer Identification Number (EIN) instead of an SSN. Furthermore, always include the relevant tax year and the related tax form or notice number. This information is vital for the IRS to correctly process your payment and apply it to the correct tax account.
-
“Amount”: Enter the exact amount you are paying. Be precise and use numbers to represent the dollar amount and cents (e.g., $###.##). Double-check your tax documents or notice to ensure you are paying the correct amount due.
-
“Address of Payee”: While not always explicitly required on the money order itself, knowing where to mail your payment is crucial. The address for mailing your tax payment depends on the specific situation.
- Paying and Filing: Refer to the instructions of the tax form you are filing (e.g., Form 1040). You can also find the correct address based on your state or the tax form type on the IRS website.
- Received a Notice: The notice you received from the IRS will contain specific payment instructions and the correct mailing address. Always follow the directions on the notice.
- Paying Only (Already Filed): For individuals who have already filed but owe taxes, you need to find the designated address for balance due payments on the IRS website. Business tax payment procedures might vary depending on the type of tax.
- Paying an Installment: If you are making an installment payment, refer to the instructions on your notice or find the address for balance due payments, as it is often the same.
It’s important to note that if you are mailing your payment with Form 1040-V, Payment Voucher, using regular mail is advised. Using private delivery services might cause delays in processing your payment.
-
“Signature” or “Purchaser’s Signature”: Sign the money order on the designated line. This validates the money order and confirms your authorization of the payment.
It is important to remember a few key points when paying with a money order:
- Do not staple or paper clip your money order to your tax voucher or return.
- For payments of $100 million or more, the IRS cannot accept a single money order. For such large amounts, consider submitting multiple payments or using a same-day wire payment.
- Keep your receipt: Retain the purchaser’s receipt that comes with the money order. This is your proof of payment until your payment is processed and confirmed by the IRS.
By carefully following these steps on how to fill out a money order, you can confidently use this method for your tax payments, ensuring accuracy and peace of mind that your payment will be properly credited by the U.S. Treasury. Money orders remain a secure and straightforward way to handle your tax obligations, especially when precision and reliability are paramount.
