Since time immemorial, it’s been an indisputable truth that if you pay the IRS late, you will be penalized. Alas, this year the IRS has announced that in certain circumstances taxpayers may qualify to pay their tax bill up to six months after the deadline with no penalties. Huzzah!
Sorry for the old-timey language, but it seemed appropriate in light of such an historic move by the IRS. If you’ve got a tax bill you can’t pay by next week’s dead-line, and you were unemployed in the last 16 months, or self-employed with a significant drop in business, then Form 1127-A may offer you very welcome relief! Here’s the word straight from irs.gov:
Most unemployed filers and self-employed individuals whose business income dropped substantially can apply for a six-month extension of time to pay. Eligible taxpayers will not be charged a late-payment penalty if they pay any tax, penalty and interest due by Oct. 15, 2012. Taxpayers qualify if they were unemployed for any 30-day period between Jan. 1, 2011 and April 17, 2012. Self-employed people qualify if their business income declined 25 percent or more in 2011, due to the economy. Income limits and other special rules apply. Apply using Form 1127-A.