The IRS uses formulas rather than negotiations to reach payment plan or Offer In Compromise figures. Negotiations with the IRS only tend to take place during audits, tax court, or Offer In Compromise appeals. Everything else is done by way of formula. In recent years, the Internal Revenue Service (IRS) has been more amenable to working out late tax payments, usually by installment agreements. But you have to address the problem up front, be proactive in how you negotiate, and not keep Uncle Sam waiting too long for his money.