If you owe more than you can pay to the IRS or have received a Notice of Federal Tax Lien, don’t panic. There’s still hope.

In 2008 the IRS launched the Fresh Start initiative. Since then, there have been several expansions to the program. Today, this program allows more flexibility when analyzing a taxpayer’s ability to pay and increases the limit of how much one can owe before receiving a lien notice. But don’t continue to put off paying your tax debt. The IRS can still file a lien even if you have not yet reached the $10,000 debt limit.

If you received a lien notice but have paid off your debt or are paying off your debt through an installment agreement, you can request to have your lien withdrawn by filing form 12277. However, if you default on your installment agreement after your lien has been withdrawn, the IRS can file a new lien and resume collection.

If you have not done so yet, you can apply for monthly payment options. Individual taxpayers who owe up to $50,000 in combined tax, penalties and interest, and filed all required returns can pay off their debt through the Direct Debit installment agreement for no more than 6 years. Individuals will not need to submit financial statements but the IRS may require some other financial information. Businesses owing up to $25,000 in combined tax, penalties and interest for the current year or last year’s liabilities also qualify for an installment agreement if all required returns were filed. To apply and to find out what information will be needed, go to payment-agreement or use form 9465.

Those who owe more than $50,000 or need more than 6 years to pay will need file forms 9465 and either 443-A or 433-F and provide financial statements.

If you can’t pay in full or if doing so would create a financial hardship you may be allowed to settle your tax debt for less. Several factors, including the taxpayer’s income and assets are considered however, the closer the offer is to the most the IRS can expect to collect within a reasonable time period, the more likely the offer will be accepted. To confirm your eligibility use this pre-qualifier tool. After submitting your proposal using this booklet you will be asked to select either a lump sum or periodic payment option. For more information visit Offer In Compromise.

Aside from securing interest to your assets, liens may limit your ability to get credit and may continue even after bankruptcy. Visit these links or more information on liens, payment options, monthly payments, and the Fresh Start program.