Recently filed returns for past 3 tax years, I owe about $34k and a bunch of penalties. How do I approach the IRS to set up a payment plan for all 3 tax years combined and how likely are they to giver me a break on the penalties?

[NCperson]

suggest reading this for starters 

https://www.irs.gov/payments/payment-plans-installment-agreements

[Mike9241]

here's a webpage for information on setting up a payment plan with the IRS. penalties and interest will not be waived and actually continue to accrue until paid in full.

https://www.irs.gov/payments/payment-plans-installment-agreements#eligibility 

your other option is an offer in compromise, if you qualify, where your debt is settled for less than 100%

https://www.irs.gov/payments/offer-in-compromise 

to see if you qualify

https://irs.treasury.gov/oic_pre_qualifier/