If you are not eligible for a payment plan through the online payment agreement tool, you may still be able to pay in installments. A payment plan is an agreement with the IRS to pay the taxes you owe within a longer period of time. You should apply for a payment plan if you believe you can pay your taxes in full within the extended period. If you are eligible for a short-term payment plan, you will not be liable for a user fee. Failure to pay your taxes when they are due may result in the filing of a federal tax lien notice and/or IRS levy action. See Publication 594, The IRS Collection Process PDF. If you owe a refund in the coming years, you won`t receive it if you`re currently reimbursing a tax liability under a remittance agreement with the IRS.