If you can pay your debt over time, an installment plan may be the right solution. Here are the pros and cons. One condition is that your monthly payments must be sufficient to pay the balance in full within 36 months. The biggest is that interest and penalties continue to accrue while you still owe.
Interest is adjusted quarterly.
It's possible to pay for years and owe more than when you started. The Tax Code imposes a ten-year time limit on the IRS to collect taxes after they are assessed. If you were billed after filing your return, this period starts on the date you filed. If you were audited, the ten years runs from the date the IRS assessed additional taxes. The collector uses the information on the forms to determine the amount you can pay.