Did you file for an extension on your income taxes? If you did so because you owe the government more than you can afford to pay, USAToday ran a good article on how to proceed.
The best advice may be in this paragraph about installment agreements:
You’ll have to pay interest on the unpaid amount at a rate that’s adjusted quarterly. The rate for the first quarter of 2010 is 4%, which is lower than you’d pay on most credit cards. The IRS charges a $105 processing fee but will reduce it to $52 if you agree to electronic withdrawal of your payments. Low-income taxpayers qualify for a $43 fee.
We find that people who can’t pay their taxes in a timely manner often have other financial concerns. A qualified advisor who works for YOU, not your creditor, may be in the best position to guide your next steps.