Once an IRS tax lien is in place, there are only four ways to release it: 

1.    Pay your full tax bill.

2.    Submit an acceptable Offer of Compromise.

3.    Wait 10 years for the statute to expire.

4.    File a claim if the lien was mistakenly placed.

Once you get your lien released, get a copy of the release form from the IRS. Send the release to credit bureaus to update your files. Otherwise, the lien stays on your credit report for seven years, even if it says “released.” It's far better to remove the lien completely.

An IRS tax lien is a public document about your unpaid taxes. It's less threatening than a levy but still quite serious. A lien protects the government's ability to collect. A levy seizes your assets or garnishes your wages.

IRS liens can damage your credit and severely limit your financial options from being able to finance a car, buy property, or even obtain credit cards. Poor credit can even hurt your chances of getting certain jobs. By damaging your credit, liens can also impact your ability to lease a home or apartment or even file for bankruptcy.

It’s possible to negotiate a settlement through an offer in compromise, or OIC.

An offer in compromise lets you settle your tax debt for less than the total owed. It's an option for you if full payment is impossible or causes hardship. 

Requesting an OIC can be a difficult and time-consuming process. You will be required to submit a large amount of your financial information to the IRS. The IRS will then consider your ability to pay, your income, expenses, and assets.

The IRS only approves about 40 percent of OIC offers, favoring those they believe they still have a chance to collect.