Tax Resources

Tax payment extension

Tax payment extension is not always granted by the IRS. In fact, the IRS denies most of the tax payment extension requests by tax payers. However, if you need a tax payment extension, you should always try to get a tax payment extension by filing the form 1127 (tax payment extension IRS form).

Does the IRS always approve tax extension?

The IRS does not automatically approve tax extension filing (Form 1127 requests) to extend the time to pay taxes. The IRS denies these tax extensions requests more often than the IRS grants them. However, you should still try to obtain a tax payment extension. The IRS decision to grant the tax payment extension request generally depends on how severe a tax payer 's hardship is.

For example, a tax payer cannot sell any assets at fair market value to pay your tax bill. If the IRS approving the tax payment extension will permit you to sell property for market value. The IRS is likely to approve your tax payment extension request. Like most IRS tax decisions, the tax payment extension decision depends to a great extent on the reasonableness of the IRS person reviewing the tax payment extension request.

Request tax payment extension using IRS tax form 1127 only if you really need it

You should only use the IRS tax payment extension form (IRS Form 1127) request only when you are in dire financial difficulties and when there is a strong chance that the IRS will approve your tax payment extension request. This is because you must fill out a complete financial statement (IRS tax Form 433) to accompany the Form 1127. By filing a financial statement, you are giving the IRS a lot of information
the IRS would not otherwise have.

Should I file taxes even if I have no money to pay taxes to the IRS?

Yes. Even if you have no money to pay the taxes due to the IRS, you should still file your tax returns. Filing tax returns and paying your taxes due are two separate things. You should always file timely tax returns, even if you cannot pay any or all of the taxes owed to the IRS. By filing your tax returns on time, you are avoiding a late tax filing penalty. If you have no money to pay taxes, the last thing you want is more taxes to have to pay.

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