Absolutely yes! Any prior tax obligations and liabilities must be paid, it doesn't get simpler than that (sucks to hear for most). What one does going forward is another option, and lawful money redemption is that option.
There has always been the argument, "If I had known I could redeem, I would have been doing so for the last 7 years." and letting the IRS Agent/Attorney determine what outcome should result from those previous years. Don't expect this argument to work 100% of the time for prior issues; a lawful money defense is meant for post-redemption issues.
Additionally, if the tax debts (but no penalties) can be written off via a Chapter 7 Bankruptcy so long as the tax debts are older than 3 years. The bankruptcy proceeding will require one to file the last 4 years of tax returns. After the proceedings, removing a bankruptcy from a credit reports is 10X easier than fighting the IRS or going through a payment plan setup. Personal credit will suck for ~12 months, but it's worth it for a tax bill that is $20,000+!
The following bullet points below are requirements to qualify for a Chapter 7 Bankruptcy discharge of tax debts:
The tax return for the debt to discharge was due at least three (3) years before the bankruptcy filing date (including extensions received).
Filed a tax return for the debt at least two years before the bankruptcy filing date (some jurisdictions won't wipe out debt if tax return is filed late).
The tax debt has not yet been assessed (determined) by the IRS or was assessed at least 240 days before filing for bankruptcy (the 240-day limit can be extended).
Did not file a fraudulent tax return or engage in willful tax fraud or evasion.
NOTE: Frivolous Filing Penalties [and setting up payment plans for prior obligations] are a different issue and one should consult a competent CPA or attorney for a solution. Often a reduced-amount payment plan (reduce by ~65% owed) can be worked out with the agency to settle.