How to Fill Out a Money Order for the IRS

Paying taxes can feel overwhelming, especially when using less common payment methods like money orders. The IRS does accept them, but they must be filled out correctly to avoid processing delays or penalties. Mistakes could lead to lost payments, so following the correct steps is essential.

Where to Obtain a Money Order

Money orders are available at post offices, banks, credit unions, and major retailers like Walmart and CVS. Fees and limits vary by provider, making it worthwhile to compare options. The United States Postal Service (USPS) charges $2.00 for money orders up to $500 and $2.90 for amounts between $500.01 and $1,000, which is their maximum limit. Walmart typically offers lower fees, often under $1, but may have different maximums.

Banks and credit unions sometimes waive fees for account holders and provide added security by verifying funds and assisting with tracking if needed. While convenience stores and check-cashing businesses also sell money orders, they often charge higher fees and may not offer the same reliability.

Filling Out the Payee Section

The payee line must state “U.S. Treasury.” Writing “IRS” or another variation could delay processing or result in rejection.

In the memo or payment reference section, include your Social Security number (SSN) or Employer Identification Number (EIN), depending on whether the payment is for individual or business taxes. Also, specify the tax year and form or notice number. For example, if paying an individual income tax balance for 2024, write “2024 Form 1040.” If responding to a notice, reference the notice number (e.g., CP14) to ensure proper allocation.

Listing Personal Details

Include your full legal name as it appears on your most recent tax return to prevent discrepancies. If your name has changed due to marriage or another legal reason, use the name from your latest filing.

List your current mailing address. If it has changed since your last tax filing, updating it with the IRS beforehand can help prevent miscommunication. Individuals can use Form 8822 (Change of Address), while businesses should file Form 8822-B.

Recording the Exact Payment Amount

The IRS requires payments to match the exact amount owed. Partial payments may result in additional interest or late fees under 26 U.S. Code 6601. Check your most recent tax bill, notice, or return to determine the correct amount. If unsure, verify your balance through the IRS Online Account or by calling the agency.

Ensure the numerical and written portions of the amount match. For example, if paying $1,245.75, write “One thousand two hundred forty-five and 75/100.” Discrepancies could invalidate the money order, requiring a replacement. Some issuers allow corrections, but others require purchasing a new one, which could delay the payment and result in an underpayment penalty of 0.5% per month, up to 25% of the balance due (26 U.S. Code 6651).

Detaching and Keeping the Receipt

Every money order comes with a detachable stub or carbon copy that includes the serial number, date of purchase, and payment amount. Keeping this receipt allows you to track the payment and serves as proof in case of disputes.

Most issuers, including USPS and major retailers, offer tracking services. USPS money orders can be tracked by calling 1-866-459-7822 or using their online verification tool. If the money order remains unprocessed after a reasonable period, contact the IRS with the serial number to confirm receipt. Keep the receipt until the payment is reflected in your IRS account.

Mailing Instructions

The IRS has multiple payment processing centers, and the correct mailing address depends on the type of tax being paid and the taxpayer’s state of residence. The IRS website provides an updated list of mailing addresses. Using the wrong address could delay processing or result in misapplied payments.

Including a completed Form 1040-V (Payment Voucher) helps the IRS associate the payment with the correct account. This form includes identifying details such as name, SSN, and tax year, reducing the risk of processing errors. Using certified mail with a return receipt from USPS or a private courier like FedEx provides confirmation of delivery. Payments must be postmarked by the tax deadline to avoid late penalties.

Replacing a Lost or Damaged Money Order

If a money order is lost or damaged before reaching the IRS, obtaining a replacement requires working with the issuer. Each provider has its own process for requesting a refund or reissuing a lost payment, typically involving a tracking investigation and a waiting period.

USPS money orders require submitting PS Form 6401 (Money Order Inquiry) along with a $17.30 processing fee. The investigation can take up to 60 days. If the money order has not been cashed, a replacement or refund is issued. Retailers like Walmart and Western Union have similar procedures, though fees and processing times vary. If the money order was cashed fraudulently, filing a police report and working with the issuer’s fraud department may be necessary to recover funds.

If a replacement is not immediately available, notify the IRS to avoid penalties for late payment. The IRS may allow a temporary extension or suggest alternative payment methods. If a payment deadline is missed due to a lost money order, requesting an abatement of penalties under 26 U.S. Code 6404 may be possible if reasonable cause can be demonstrated.