Reducing an IRS Lien

• 1). Ask for a settlement.You may contact the IRS and ask them for a settlement so that you can pay your outstanding tax debt. You can find contact information for the IRS on their website. (See Reference 2.) A settlement will be a reduced amount that the government will agree to accept in exchange for releasing the tax lien against you. A settlement may be paid monthly or in a lump sum. Settlement offers are usually accepted by receiving and accepting an Offer in Compromise. If this offer is not provided to you, you can download it from the IRS website. An Offer in Compromise is Form 656 (What You Must Know Before Filing an Offer in Compromise). (See Reference 3.) Once the offer is signed by all parties and the settlement offer is paid, the tax lien should be released.
  
  
• 2). Get professional assistance. If you do not have success with settling your tax lien with the IRS, obtain the help of a tax professional. Tax services, as well as tax preparers, can assist you in dealing with the IRS. Tax professionals are aware of your rights as a taxpayer and have had experience in dealing with the IRS directly. You may have a better chance at reducing your IRS lien if you let a tax professional help you settle the debt.
  
  
• 3). Submit a tax abatement request. This is a request to reduce the penalties that have accrued on the outstanding tax debt. To qualify for this tax abatement, you will need to submit Form 843 to the IRS. (See Reference 1.) You can download this form from the IRS website under Forms and Publications. If you have an IRS lien against you for outstanding tax debt, you will be able to reduce the amount of the lien if you qualify for a tax abatement because the amount you owe will be reduced by the penalties that were added to the debt.