Posted on 04/15/2012 5:35:27 AM PDT by nuconvert
Just thought I'd pass along some information I heard about just recently.
For anyone who owes money to the IRS for 2011, & has been unemployed for at least 30days in 2011 or in these past few months of 2012, there is a special Extension form that will allow you to postpone paying for 6 months. It's form #1127-A, and it's called "Application for Extension of Time for Payment of Income Tax for 2011 Due to Undue Hardship".
This is different from a normal extension, in that you don't have to pay anything up front. The late payment fee is waived, but you will have to pay interest on what you owe (I believe it's 3% annually, and you are promising to pay what you owe in the next 6 months, or you will suffer penalties.
You will still have to fill out your 1040 (or whatever) to figure out your adjusted gross income and exactly what you owe, but it may help someone who is feeling desperate about coming up with money they owe, and it's cheaper in the longrun than putting the payment on a credit card.
Hope this helps someone.
BTW - the Extension form must be postmarked by Apr. 17 and it goes to a seperate address from your 1040. The form & information are online.
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