An installment agreement, where you agree to pay a fixed amount each month over time, will cost you $105, and interest charges will still accrue. An installment agreement will not result in your being able to keep your refund. Quote from the IRS: "As a condition of your installment agreement, any refund due to you in a future year will be applied against the amount you owe. Therefore, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. The IRS will automatically apply the refund to the taxes owed. If the amount of your refund does not take care of the tax debt; then your installment agreement continues until all of the terms are met." So, doing an installment agreement is pointless and expensive. The Earned Income Credit and Additional Child Tax Credit have been made more generous this year. Also, if you and your spouse have been working, there is an $800 Making Work Pay credit that may benefit you depending on how much was withheld for taxes. Get you tax return done as early as possible and submit it. The sooner you pay off the IRS bill the better for you. Hopefully you will have some refund left over from the increased tax benefits that have been put in place this year.