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As recommended in the other responses, if you owe the IRS money, pay them. If you can’t pay them all at once, fill in the Form 9465 to request a payment plan (there is a fee for this of $105 I believe), and then if it is accepted, make sure to make your payments every month on time until it is paid off in full.They will charge you interest on the balance, but it’s better than paying interest on a credit card.The thing to remember is, you’re going to pay them one way or another in most cases, so make it as easy on yourself as you can.

See http://www.irs.gov/taxtopics/tc202.html. If you owe less than $25,000, you probably should fill out and submit Form 9465, Request for Installment Agreement, see http://www.irs.gov/pub/irs-pdf/f9465.pdf. You can make this request online as well, http://www.irs.gov/individuals/article/0,,id=149373,00.html. If you owe more than $25,000, you will probably have to provide the IRS with a Collection Information Statement, Form 433-A, http://www.irs.gov/pub/irs-pdf/f433a.pdf, so that the IRS can assess how much you can actually pay.I would also urge you to seek out an enrolled agent or a CPA who specializes in tax matters in your area; he/she can advise you on your best course of action and can represent you before the IRS should that become necessary.

Is it possible for the IRS to take monthly payments?Yes. If you are asking about monthly payments for the balance due on your Form 1040, there is a Form 9465 that you need to fill out and attach to the front of your tax return. Or, if you are responding to a notice received after you’ve already sent in your tax return, file 9465 with the IRS Service Center at the address provided in the instructions for the form.The link below is to the IRS site, with the form and its instructions, and some other information about how to pay what you owe.About Form 9465 | Internal Revenue ServiceOn the other hand, if you are asking about making estimated income tax payments to the IRS based on your business income during the year, or when your withholding from other sources of income during the year is too low, these tax payments are normally made quarterly. I recommend using the quarterly payment method because it’s what the revenue clerks are accustomed to handling. Nor does it need to be a fixed amount. Adjust the amount up or down each quarter based on what you expect to owe by the end of the year. Maybe your business is having a particularly good year, for instance.Penalties and interest for underpayment of income taxes can be steep, so take care with the calculations.However, neither the federal nor any state government is likely to object to receiving tax payments once a month instead of quarterly, but there’s a greater risk of errors. It’s very important that you provide enough information with each check so that it is posted to the correct account, because it will be an aggravation and a struggle to get federal and state employees in those revenue departments to fix a mistake, even if their office is responsible for making the mistake.About Form 1040-ES | Internal Revenue ServiceYes, I am well aware that in the age of the internet these tax payments can be handled electronically. I just happen to like having a cancelled check in hand when talking to employees of huge organizations like the IRS or the telephone company about a posting error, or at least the facsimile of the check as is provided by banks these days.