If you owe the IRS money and don't pay it after they demand payment, they may file a Notice of Federal Tax Lien against you in the county records. This is picked up by the credit bureaus, and it can affect your ability to purchase things on credit, or even to get a job or purchase insurance.
It is possible to ask the IRS to withdraw their Notice of Tax Lien, even without paying the full amount of the debt, in certain circumstances. Perhaps they didn't give you the proper notices before they filed it. Or perhaps you are on an Installment Agreement, have a direct debit payment arrangement set up, and the IRS is willing to withdraw their lien. Watch the IRS video below for tips on how to ask the IRS to withdraw their Notice of Lien.
You will need to obtain IRS Form 12277, fill it out and provide it to the IRS. It's available on the IRS website. The withdrawal of a notice of tax lien can help you get a job and pay the IRS in certain cases, for example. The IRS will want you to be in compliance with tax filing requirements, however, to be elegible for relief.