IRS Form 1127A is used to apply for more time to pay your federal income tax. If you use IRS form 1040, 1040A, or 1040EZ to file your income taxes then you can use this form to ask for extra time to pay.
Here’s what you get if you file IRS form 1127A and it is approved:
- an extra 6 months to pay your taxes
- exemption from penalties usually charged when people don’t pay their taxes on time
Here’s what you DON’T get when you file IRS form 1127A:
- you don’t get a free pass on paying your taxes: you still have to pay them
- you don’t get relief from paying interest on what’s due
- more time beyond October 15
Remember: the fees will be put back on your account if you don’t pay up by October 15. This is an extension of time to pay, not a full exemption from having to pay.
The other thing to keep in mind about extending your time to pay your taxes with the IRS is that interest will still be charged. Even if you file IRS form 1127A properly, and also file IRS form 4868 (extension of time to file your taxes) interest starts accumulating April 16. Interest runs until you pay.