What payment options do I have if I owe $13,377 on my 2011 individual tax return?

You can try to set up an installment plan. Or you can make an offer in compromise. You would offer less than the balance, but usually have to pay it in one lump sum.

The option that is available to nearly everyone is an installment agreement where a payment plan is negotiated for you and you pay the IRS monthly a certain amount. The interest and penalties will continue to accrue, however, so you will end up paying more over time than if you could just write them a check. And the second option, which is available to a limited number of taxpayers (only those taxpayers who are in a financial distress) is an offer in compromise where you would essentially offer the IRS a lesser amount than what you owe and ask them to basically forgive the rest of this tax debt. But this option is not available to everyone; the IRS does not just settle for less if they believe you have the financial ability to pay the whole balance in full over time.

File the return and send whatever payment you can afford now. If you don't hear from IRS within a month, send in another payment, and keep doing that until you hear from them. As soon as you hear from them (unless you can then pay in full) contact them to arrange a monthly payment plan. Hopefully you can pay at least $360 per month.

You have a few options. You could get a short term extension if you are able to full pay your liability within 120 days. If you are looking for a payment plan, you could ask for a streamline installment agreement based on the liability amount, or for an installment agreement based on your current financial information. With the first type of payment, you will be asked to pay approximately $250.00 per month. If that payment seems too high, you could negotiate a lower payment based on your income and expenses.

You should file and the return and see a tax professional about the various options which you may have to pay down the liability. Done correctly there will be interest, but perhaps you will be able to avoid some or all of the penalties.