If you don't qualify for the IRS Offer In Compromise program, an IRS Payment Plan may be the best way to resolve your tax liability.  Setting up a payment plan with the IRS gives you up to 72 months to pay off your balance.  Taxpayers can save some money by setting up an account on-line and by making payments via direct debit on the IRS website.  Interest will continue to be charged on your outstanding balance as you pay the debt off. The IRS is statutorily obligated to charge a nominal amount of interest.