You should apply for a payment plan if. There are two types of simplified installment agreements, depending on how much you owe and for what type of tax. For both types, you must pay the debt in full within 72 months (six years) and within the deadline for the IRS to collect the tax, but you won't need to file a financial statement. In general, you can choose what you pay each month.
That is, the IRS will ask you how much you can pay. However, if you have a long-term repayment plan, you should choose a payment amount that pays off your debt within 72 months. The Fresh Start program allows taxpayers to settle their tax debt for less than they owe, giving them a new opportunity to pay their future taxes.
