If the IRS has put a lien on your property, you must satisfy the lien (pay off the debt) before you can sell or refinance the home. If you want to sell your home and the amount of the sale will satisfy the debt to the IRS, you can request a payoff letter from the IRS stating that money collected from the sale must be paid prior to their release of lien. If the money earned from the sale will not satisfy the debt, you would need to request a subordination or discharge.