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The speaker, identifying as self-employed spy "James Bond" (007), shares that he made $100,000 in gross income last year and is filing his taxes using Form 1040 ES. He emphasizes that income tax operates as a pay-as-you-go system. While employees pay federal withholding regularly, self-employed individuals must make quarterly estimated tax payments to the IRS based on anticipated tax liabilities to avoid underpayment penalties. These payments should cover both income and self-employment taxes, which are reported via Form 1040 ES. The tutorial provides step-by-step instructions on filling out Form 1040 ES effectively.