I believe that is incorrect, if by that, you mean that you can escape underpayment penalty when you make insufficient timely tax payments throughout the year. From the 1040 instructions for line 77 (2006): "You may owe this penalty if ... [y]ou did not pay enough estimated tax by any of the due dates. This is true even if you are due a refund". I presume you did not mean the absurd interpretation that no one "has to" pay taxes, much less estimated taxes. That is like saying: "no one 'has to' stop at stop signs or red lights". The statement is true. But a person will suffer the consequences, if they do not abide by the law. The tax law requires that we pay estimated taxes in a timely manner through the year or suffer the consequences (penalty), whether or not we expect a refund.