If you are indebted to the Internal Revenue Service (IRS) it is best if you pay the debt in full to stop the running of interest and penalties. If you cannot pay the debt in full than inquiring about installment payments is the next best thing. If you contact the IRS before they contact you than your chances of qualifying for installment payments are good. You may also inquire about the Offer to Compromise. Again, if you qualify you may pay less in each installment. In both instances interest and penalties continue to mount.
You chances of a tax settlement with the IRS are better if you: do not procrastinate and wait for them to contact you; Inquire about the Offer to Compromise; and inquire about installment payment.