If you don't qualify for the State’s Offer In Compromise program, a Payment Plan may be the way to resolve your federal tax problem. Setting up a payment plan with the State Tax Department gives you a little more time to pay off your federal tax debts. Walls & Associates has the experience and the knowledge to help you initiate a Payment Plan for your federal tax return. Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. You are required by law to pay the interest on your tax debt.