<prompt> Human: I received a 20K settlement in 2016 after lawyers fees whatnot - it was originally 100K, and there was another person I had to split the money with from the state due to a traumatic event that had happened to me at no fault of mine, and had honestly thought that taxes and everything had been taken out. Ive never had such a sum of money in my life, so I used the entire amount to pay off my car and three of my student loans I had five student loans total.But eventually, I received a notice in the mail that an audit was done and I owe just over 12K on my taxes for that money including a penalty fee. It had never entered my head that I needed to include that when filing my taxes, I didnt even get a W-2 for it, so I didnt think about it and filed as I always did.I honestly am freaking out. I havent really done anything about it yet, but will be going to the IRS website to set up a payment plan. I have clinical depression, and Ive been putting off doing this because I honestly dont know what to do, and I have a bad habit of avoiding things. I make 11 an hour as an admin assistant, and everything I make goes to my remaining two student loans, bills and my car the one I had paid off previously was a total loss after a wreck caused by an uninsured driver. I still live at home with my mom, because I cant afford to live anywhere else Im 28.Has anyone here owed such an amount to the IRS before? How did the payment plan work for you - can you choose your amount? Can you pay it indefinitely until its paid off? Theres no way I can pay this amount in 60 or 120 days which I think are two of the options on their website, so Ill have to go with their high interest monthly payment option, which will add a one-time 149 fee to my balance. I suppose Id just like some idea on the process, because this is all so new to me. Every time I think about it, I start crying. Id have rather not received the money Id gotten at all. Should I just put my student loans on hold to pay this? Ill be paying them for the rest of my life anyway.---EDIT: Thank you all for the advice! I will be meeting with a CPA before I begin the repayment process.  <response>: Take a read through Did you spend any money on treatment for the trauma? You should at least be able to write those amounts off. 