I didn't see the answer earlier, that she owes only $7,000.  So IRS gave her the 30-second answer, "pay us enough each month to pay it off in 36 months, and we won't bother you, and you can stop bothering us."  So if she doesn't want to take the money out of her 401(k) all at once, take $2,400 a year.  Is she still employed?  Is she one of those people putting off Social Security until age 70?  Does she own a house that would qualify for a reverse mortgage?  How did she end up owing $7,000, anyway?  "Fairness" means she has to pay her taxes just like most people.