Oct. 15 is fast approaching. If you filed an extension to file your taxes, you must do so by this date. It is also the deadline for those who filed a hardship-to-pay extension.
The IRS allowed taxpayers and small businesses additional time to pay their tax liability without assessing the Failure to Pay penalty if they filed Form 1127-A (Application for Extension of Time for Payment of Income Tax for 2011 Due to Undue Hardship) by April 15.
The requirements for filing this form were that the taxpayer was unemployed for a period of 30 consecutive days in 2011 or before April 15 and had an adjusted gross income of less than $100,000 ($200,000 if filing jointly). It also allowed small business owners who experienced a 25 percent reduction of income due to the economic downturn additional time to pay the tax liability.