A frequent question we often hear is “Can the IRS collect my tax debt from me for the rest of my life?” Fortunately, the answer is no.
The IRS has 10 years to collect any taxes you owe. The 10 years starts to run from the date the IRS first assesses the taxes against you. For example, you file your tax return on April 10 showing you owe a balance you cannot pay with the return. The IRS processes your return on May 1 and generates a notice showing the amount of taxes you owe. The date on the notice starts the running of the 10-year collection statute. Each assessment (usually each year) has a collection statute expiration date (CSED).
However, there are some circumstances which can extend the CSED.
- Filing bankruptcy
- Filing an offer in compromise
- Filing a collection due process request (appeal) with the IRS
- A proposed installment agreement is pending with the IRS
- The IRS files litigation against you
- Entering a combat zone
- Living outside the US
Further, the collection statute is restarted if an audit results in an additional assessment of taxes against you.
In resolving your tax liabilities with the IRS, the CSED can be crucial in the kind of resolution you may be able to, or want to pursue. Contact us so we can help you with the best strategy in your case.
