A payment plan (installment plan) is an agreement with the IRS to pay the taxes you owe within an extended timeframe. You should request a payment plan if you believe you will be able to pay your taxes in full within the extended time frame.
Installment plans are often viable options that work well for both the IRS and the taxpayer. Though you will usually have to pay penalties and interest, setting up a payment plan can get you back on a track, eventually becoming free of your tax debt.
