Tax Problems >> Amnesty/Resolution >> Collection Statute Expiration
The taxing authorities have a limited period of time to collect all different types of tax balances owed. If taxes become old enough, they may legally expire. Before implementing any other type of tax amnesty program, it is our first objective to understand when the taxes will expire.
The IRS typically only has 10 years to collect a delinquent tax liability. The statutory period initiates on the date the tax is assessed and the CSED is generally 10 years after this date. The 10-year period for collection can, however, be extended (aka "tolled") in several instances; including by a pending, rejected or returned offer in compromise, by a tax court proceeding, by a bankruptcy filing, by a taxpayer's waiver, or by numerous other instances. If this collection statute date expires, a taxpayer can become free and clear of the IRS tax obligations.
During the research phase of our work, we will obtain the information needed to calculate these dates on each of the various tax liabilities owed. If the CSED has already passed or is about to, then we will pursue it as the tax resolution program of choice.
It may be necessary to represent/defend the taxpayer in the short-term until this date arrives. After the CSED has passed, we will confront the IRS with this information and demand that any Federal Tax Liens previously filed be released.
Many of the state taxing authorities also have collection statutes that can help taxpayers realize resolutions to their liabilities. Generally, each state's statutes differ from one another, so there are too many to outline on this page. Rest assured, we'll consider whether or not a state collection statute may benefit you to pursue.
If your tax debts are fairly old and you believe that the CSED on your liabilities may be approaching or already past, contact our office to discuss your case and to start the research process for making this determination.
