« The Options Available to Taxpayers to Solve IRS Problems-Bankruptcy | Main | IRS Enforced Collection Activities-Wage Levy (Wage Garnishment) and Bank Levy and How to Stop Them »
The Options Available to Taxpayers to Solve IRS Problems-Statute of Limitations
By Larry Weinstein, CPA | December 14, 2007
The 6th and Final Installment in the Series-Options Available to Taxpayers to Solve Their IRS Problems
Statute of Limitations
The IRS does not have forever to collect the money that you owe them. They cannot chase after you for the rest of your life.
There is a 10 year statute of limitation for collecting tax (6 years for assessments of tax or levy made on or before
This 10 year period begins to run on the day after the date of assessment. The statute is extended for the period of time you have a Bankruptcy filed and pending. The statute is also extended during the time you have submitted an offer-in-compromise and are waiting for an approval. The time limit is also extended while you are waiting to have a Collection Due Process Hearing.
This 10 year statute of limitation can be extended by mutual agreement if the agreement is made within the 10 year period.
If the IRS doesn’t collect the full amount in the 10 year period, then the remaining balance on the account disappears forever. All collection activity by the IRS must stop at this time.
Topics: Statute of Limitations |