Taxes

H&R Block knows all about reducing taxes. Ask them to advise first. If they tell you there is no way to get the liability reduced, ask them what happens if you make payments. With an amout this small, it is possible to clear the debt by making payments even if the government doesn't agree to any payment plan. If the payments are big enough to keep the balance going downward even as interest is being applied, the state will have no incentive to do anything about collecting faster. This trick won't work on large amounts, but on your tax debt it should work. But don't do anything until you get some advice from H&R Block.

This answer must not be relied on as legal advice for the reasons posted here:
http://davidphipps.com/docs/Disclaimer.doc . And I am not your attorney.

David