Yes, sometimes. This is called an Offer In Compromise (OIC). Be careful with these late-night commercials making these outrageous claims. These companies typically charge several thousand dollars up front, then assign your account to an employee who is only authorized to discuss the account, but not represent you before the IRS.
Make sure anyone helping you with an OIC is authorized to represent you, such as an Enrolled Agent or attorney. This is a slow and complicated process. We often help clients with this sort of issue.
Depending on the amount of back taxes, your income, and your assets, you may be able to negotiate a very favorable settlement. This can be quite advantageous in certain cases.
