03 Apr IRS Fresh Start Initiative: Apply for Extension of Time to PAY with Form 1127A or Request an Installment Agreement with IRS Form 9465FS
If you don’t have the money to pay your taxes you should file your return on time and pay as much as you can with the return to eliminate the late filing penalty and minimize the late payment penalty/interest charges.
For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. This is done using IRS form 1127-A, Application for Extension of Time for Payment. Check out the form to see if you qualify.
Or if you prefer you can request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. I suggest considering the Online Payment Agreement application or submitting IRS Form 9465-FS, Installment Agreement Request, with your tax return. IRS charges a user fee to set up your payment agreement.