Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship
Form 1127 asks the IRS for extra time to pay a tax that is due, under section 6161, when paying on the due date would cause undue hardship. It extends the time to pay, not the time to file.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 1127?
Most extensions, like Form 4868, only extend the time to file; the tax itself is still due on the original date. Form 1127 is different: it requests an extension of the time to pay, either tax shown on an upcoming return or an amount determined as a deficiency after an examination. The IRS grants it only for undue hardship, meaning more than inconvenience: the taxpayer must show substantial financial loss would result from paying on time, such as being forced to sell property at a sacrifice price.
The application must include a statement of assets and liabilities and an itemized list of recent income and expenses, and the IRS may require security such as a bond. Interest still accrues on the unpaid tax even when an extension is granted. The form itself and its instructions describe the conditions and where to send it.
Who files 1127?
- Taxpayers who can show that paying tax on the due date would cause undue hardship, not mere inconvenience
- Individuals facing a deficiency from an IRS examination who need time to pay it
- Taxpayers who would have to sell assets at a serious loss to pay on time
- Not for people who simply cannot pay in full: an installment agreement on Form 9465 usually fits that situation better
How to fill out 1127
- Enter your name, identifying number, and address, and identify the tax, the amount, and the due date you are asking to extend.
- State the extension date you are requesting and explain the undue hardship in detail.
- Attach a statement of your assets and liabilities and an itemized list of your income and expenses for recent months, as the form requires.
- Sign and date the application.
- Download the completed PDF and mail it to the address in the instructions, on or before the due date of the payment. The IRS will notify you whether the extension is granted and whether it requires security.
Quick fill 1127 on this page
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Frequently asked questions
Does Form 1127 stop interest and penalties?
A granted extension generally protects you from the failure to pay penalty for the extension period, but interest continues to accrue on the unpaid tax until it is paid.
How is Form 1127 different from an installment agreement?
Form 1127 asks to postpone payment for a limited period because paying now would cause undue hardship, and it demands detailed financial proof. Form 9465 asks to pay over time in monthly installments and is far more commonly granted.
What counts as undue hardship?
More than inconvenience. You must show a substantial financial loss would result from paying on the due date, for example having to sell property at a sacrifice price. Lack of cash on hand, by itself, is not enough.