How Long Can IRS Collect Tax Debt?
Potential clients often ask:
How long can IRS collect this tax from me?
This is our Morning Coffee Series, and we’re going to answer that question.
How long can the IRS collect tax liability?
Generally speaking, the IRS can collect tax for ten years from the date of assessment of the tax.
That 10-year period is often referred to as the Collection Statute. It begins when the tax is assessed, not when the tax return is filed.
This period of time ends on the Collection Statute Expiration Date, also abbreviated as the CSED.
We often use that CSED as part of our negotiation with IRS because sometimes the CSED favors us.
For some, a 10-year window of time may seem like a long time. But for some, a decade is the blink of an eye. We’re all different.
Before you get too comfortable with that 10-year window of time, there are some things that you need to know.
We want you to be careful because sometimes that statutory period could have been extended for months or even years.
Activities that can extend the 10-year Statutory Period:
- Prior Offer-In-Compromise Filings
- Past applications for installment agreements
- Due process hearings and appeals
- Bankruptcy and other legal actions
You will need a tax attorney to work through those extending events so that you can pinpoint that Collection Statute Expiration Date.
It is also important to know that each state has a Collection Statute Expiration Date. Sometimes it’s ten years, and sometimes it’s 20 years. It varies.
So please be aware of that and be careful.
That’s all for today, but we’ve still got more questions to cover.
And we do that throughout our Morning Coffee Series.
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