Every year millions of tax payers file the return, but don’t pay the tax due with the return. A failure to pay penalty gets piled on. That’s not what we want for you, so here’s what to do.
File Form 1127, and you may save money and avoid headaches. Acceptance of Form 1127, known as an Application for Extension of Time for Payment of Tax, permits a citizen to file the return while being granted an extra six months to pay the tax liability without penalty. The IRS will permit the extension if you exercised reasonable care, and you cannot pay because of circumstances beyond your control. However, if the tax is not paid at the end of six months, penalties will kick in.
And as you perhaps know, virtually anyone can get an automatic 6 month period to file an extension by completing Form 4846. However, a penalty is assessed for paying late and for non-payment of the tax. Filing an extension buys time, but it’s a short-term, and often expensive solution.
Do not hesitate to discuss your situation initially free of charge, or get our free book, How to Get Tax Forgiveness.