IRS 10-Year Collection Statute
Confirm your Statute Date with Safe & Free IRS Check-Up
If you have IRS Balances on Tax Years that are approaching 10 years old, we can confirm your specific Collection Statute Expiration Date (CSED) in a confidential manner. By confirming your statute date without the IRS knowing we know the statute date, it provides the necessary leverage needed to resolve tax debt without the IRS being able to deny or contest our ability to do so.
IRS Collection Statute--IRS Only has Ten (10) Years to Collect on Tax
The IRS statute of limitations to collect on unpaid tax is ten (10) years from the date in which the balance was incurred. Simply put, the IRS has 10 years to collect once they process a return that shows a balances due or 10 years from the date in which an assessment occurs. During this 10 year period, the IRS can pursue legal action to collect on unpaid tax using any collection means possible, including seizure of assets, garnishment on wages, seizing of bank accounts, or levying other financial accounts.
While the IRS only has ten years to collect on unpaid tax, there are certain factors that can extend or pause this Collection Statute. Truthfully, the IRS doesn't even want you to know there is a 10-year statute of collection as they never want to make it easy for people to walk away from unpaid tax as it can set a public precedent for individuals to think they can stop paying taxes.
How is Colonial Tax Consultants Able to Confirm Your Exact 10-Year Collection Date(s)?
As Licensed Tax Practitioners, we simply have an ability to access all taxpayer account information in a confidential manner with your consent. This enables us to confirm your position without IRS Collections ever being aware that we are aware of everything that is on your account!!
Colonial Tax Consultants offers a FREE service to anyone having issues with the IRS to confirm status of all activity currently on account with the IRS. This is all part of our Free Consultation and the purpose of this consultation is to determine the best course of action in addressing your particular set of tax problems. The only way we can confirm the best solution in addressing your tax issues is if we take the time to truly rely on factual information. Colonial Tax Consultants can perform these confidential reviews within 24 hours (and sometimes even the same day).
There is no obligation to hire us simply because we take the time to confirm your Statute Collection Date and identify the specific steps that need to be taken to properly address your IRS Tax issues.
If your car is broken down, you don't just call a mechanic and ask what it will take to fix the car. It needs to be looked at so you can be advised of what needs to be done to fix the problem before you ever agree to have the car worked on. As with anything, however, it is important that whoever you are entrusting to get under the hood is honest and ethical in their evaluation. We are confident that if you read our reviews, you will see we do things the right way around here!
Once our confidential review is complete, you will know everything you need to know about your status with the IRS. If you are seeking representation to ensure everything is cleaned up properly and without future issues or repercussions, we will gladly provide you with a quote and a contract that spells everything out so you will know the exact work we are going to perform and the outcome you will receive!
Colonial Tax Consultants GUARANTEE: Our Free Confidential IRS Check-Up will not awaken the IRS, expose you to any threats or have any kind of negative impact on current status. Colonial Tax Consultants is here to fix issues, not worsen your position!
Contents for IRS Statute of Limitations (click to navigate):
Tax Returns: 3-Year Statute for IRS to Review Return and Issue Assessment
Generally, the statute of limitations for the IRS to assess taxes on a taxpayer expires three (3) years from the due date of the return or the date on which it was filed, whichever is later. A return is considered to be filed on the due date of the return if it was filed on or before its due date, which is typically April 15th of each year. Once a Return is filed, if the reported income on the Return does not identically match the income that was reported to the IRS, the IRS has (3) years to issue a tax increase in order to collect on this taxable income that was omitted on the Return.
The IRS also has three (3) years to review a Return through Examinations and conduct an audit. this is where they will require you to document all disclosed work expenses and other itemized deductions. Failure to substantiate the figures that were claimed on Return will result in a Tax Increase notification to enable the IRS to begin collecting. An assessment occurs when an IRS officer signs a certificate of assessment stating the amount owed by the taxpayer upon review of Return. Additionally, the IRS statute of limitations gets extended for an even longer time when there is a substantial omission (more than 25 percent) of gross income on the return. In these circumstances, the time limit for the IRS to make its assessment gets stretched out to six (6) years from the date the return is filed or deemed filed, whichever is later. If you think the IRS has assessed you beyond the Statute, feel free to contact us and Colonial Tax Consultants can perform a Free Confidential Check-Up to make sure your rights are not being violated.
How Long Can the IRS Collect on Tax?
The IRS generally has ten (10) years to collect on tax. After that time has passed, the IRS can no longer legally collect and they write it off.
The ten year period is measured from the date that the tax was assessed, not when it was originally due. So, if you filed your tax return late the 10 year clock will not start running until you filed the return.
If you never filed a tax return, but the IRS filed one for you using a Substitute for Return / 6020(b) assessment, then the statute of limitations began running whenever that assessment was processed by the IRS on your behalf.
The date that your Collection Statute expires is known in IRS-lingo as the Collection Statute Expiration Date, or CSED.
My Tax Issue Was Assessed More Than 10 Years Ago And Has Not Expired. Why?
IRS can only legally collect for 10 years, but there are many events that may stop that 10 year clock from running. This is known as "tolling the statute of limitations". There are many things that stop or "toll" the statute of limitations from running, which Colonial Tax Consultants will review on your behalf and make sure nothing is being done beyond your rights as a Taxpayer.
In general, during any time period in which the IRS is legally unable to pursue action against you, the statute of limitations will stop running.
If you exercised any of these options in the past, there was probably a period of time when the statute of limitations was not running.
In practice, this can make the statute of limitations longer than ten years -- sometimes adding several years to the clock. It is always best to review the account and confirming any pauses in statute to be sure all information is exposed and to avoid future obstacles.
Will the IRS Notify Me Once the 10-Year Statute Expires?
No, the IRS is not required to notify you once the statute date has arrived as they do not want to make it easy to fix pending IRS issues.
Although the IRS cannot pursue collection once the statute has expired, it is important that issues on account are confirmed to be fully written-off and even obtain official IRS documentation so the IRS can never legally collect at any point in the future nor can they try to prolong or extend their ability to collect against you, regardless of your financial situation.
Once the issues(s) are confirmed to be written-off, we can immediately work to get a Certificate of Release of Federal Tax Lien issued. This will serve as official documentation that the tax has been “satisfied” and the tax lien has effectively been released. You can then provide this original document to any lenders, credit bureaus or any other applicable party to prove you no longer have any issues with the IRS.
How Do I Know If My Statute of Limitations Has Expired?
Call us to take advantage of our free consultation.
One of the things we look at for every potential customer is how much time is remaining on the statute of limitations, because this can have a big impact on what strategy is best for you.
There's no obligation, no catch, and no pressure.
My Statute of Limitations Has Expired - Now What?
If the IRS Statute of Limitations has expired, congratulations! All that remains is making sure appropriate documentation is retrieved so you can always have this information in your records and to ensure there will never be any future issues or concerns.
Colonial Tax Consultants will also work with the IRS to ensure that a Release of Federal Tax Lien is issued so you can provide documentation of this Release of Lien to anyone who is concerned about the lien and requires proof that your lien is fully removed.
My Statute of Limitations Has Not Expired - Now What?
If your Statute of Limitations has not expired, but it is getting close, the best thing to do is to get a plan in place with the IRS to ensure you're protected from any threats without doing anything that will stop the clock from running. Colonial Tax Consultants will evaluate any and all options to ensure everything is done in your overall best interest and to make certain the optimal outcome is always achieved. Every situation is different and why we always get in and confirm status before anyone ever decides if they want to utilize our services.
Your Next Steps
Give Colonial Tax Consultants a call at (866) 573-3755 today to talk to someone safe about your situation.
We can have a quick chat on the phone so I can answer your questions and see if there is any way we can help you.
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There is no risk and no obligation. We can really simplify this entire process for you!