A woman who accused the Internal Revenue Service of driving her husband to suicide said today that the agency had agreed to settle her $1 million lawsuit by eliminating her tax debt of more than $400,000 and letting her keep her home.

''What happened to me could have happened to any taxpayer,'' said the woman, Shirley Barron. ''I hope my story will influence lawmakers.''

The Barron case, one of the first lawsuits filed under a 1996 amendment to the Taxpayers' Bill of Rights, was cited last fall during Senate hearings into abuses by the agency. The Senate is holding another round of hearings now.

Mrs. Barron's husband, Bruce, a 47-year-old lawyer, killed himself by carbon monoxide poisoning in his garage in 1996 after learning that a bank was foreclosing on the couple's home in Derry because the I.R.S. had placed a lien on it.