Yes it
is possible to negotiate an installment
agreement with the IRS, which
would allow you to pay off your federal tax debt in monthly payments.
Please see the
following TurboTax FAQ, "Can I set up a payment plan for my taxes?":
The IRS will let you pay off your federal tax debt in monthly payments through an installment agreement.
If you haven't filed yet, step through the File section of TurboTax until you reach the screen How do you want to pay your federal taxes? Select the installment payment plan option, click Continue, and follow the onscreen instructions.
If you already filed, or you're unable to find this option in TurboTax, you can apply for a payment plan at the IRS Payment Plans and Installment Agreements web page (make sure you've filed your return before applying through their site).
State Payment Plans
Most states offer some kind of installment payment plan as well, although the procedure varies from state to state.
The easiest way to obtain the info you need is to simply search the internet using the phrase <state> tax payment plan (for example, New Jersey tax payment plan or Illinois tax payment plan). You can also try contacting your state Department of Revenue for details.
There are 2 links here for you to check out one is for federal the other is the state. Please let me know if you have any other questions.
