Infographic: 2019 Taxes by the Numbers Full Size Version Share | Related Content What Is a 1035 Exchange? 1035 exchanges provide a way to trade-in an annuity contract or life insurance policy without triggering a tax liability. Red Flags for Tax Auditors Here are six flags that may make your tax return prime for an IRS audit. You May Need to Make Estimated Tax Payments If… Have income that isn’t subject to tax withholding? Or insufficient withholdings? You may have to pay estimated taxes.