Payments Applied from a Previous Year
Taxpayers who overpay their income taxes in one year can apply all or part of their overpayment to the next year's tax. This is done by indicating on their return the amount to apply to the next year's estimated tax.
Ask the taxpayer:
If the answer is "yes" to both questions, ask to see last year's tax return to document the amount of tax applied to this year's tax return. Add this amount to the estimated tax payments and enter the total on the applicable line. You will be confirming information provided by the taxpayer that should be included on the intake and interview sheet.