How difficult is it to set up payment plan with the Federal Government i.e. 2007 income tax owed.?

First, pymt in full is due by 15 Apr 08 to avoid interest and penalties. So I'd do my best to pay it all by then. If you can't pay all of it, pay what you can to reduce interest and penalties on the balance due. You can pay by check, money order or credit card (a convenience fee is charged by the service provider on credit cards), or via electronic funds withdrawal using Form ACH 1040/ES.

If that's simply not possible you still want to file the return not later than 15 Apr 08 to avoid a failure to file penalty and then complete Form 9465, Installment Agmt Request. Again, penalty and interest will be charged on any amount due but not paid by 15 Apr. You don't need to figure it out, the IRS will send you a letter a few months down the road. In addition, a fee is charged by the IRS if a taxpayer's request for an installment agmt is granted (fee is $105, or $52 if you permit direct debits monthly from your bank acct). It takes about 30 days to get an answer on the installment agmt request. Good luck!

Not hard go to

www. IRS.gov

very easy, actually