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The California Tax Attorney Blog has a useful piece up on settling tax debts with the IRS online:
The Online Payment Agreement (OPA) allows eligible individuals to apply for an installment agreement to pay off their tax liability. To qualify, you must have your bill from the IRS and have filed all required tax returns. You must owe less than $25,000 and be able to pay the entire liability within 60 months.
It's a good, brief summary.
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