If you are not financially capable of paying back the IRS, you may be able to negotiate an Offer in Compromise, where you can settle your back taxes for less than you owe. If the IRS accepts your offer, you can pay the amount agreed upon, and all federal tax liens or levies are removed.
Negotiating an Offer in Compromise can last up to 18 months and be very complicated. About a quarter of all offers are accepted so it is highly recommended that you get a tax professional to help.
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