IRS Statute of Collection

--Confirm your Statute Dates with Free IRS Check-Up--

If you have IRS Balances on Tax Years 2009 or older, we can find out your Collection Statute dates without the IRS knowing we are aware of the statute date(s). This is very important when utilizing statute to resolve IRS Balances.

Collection Statute--IRS has Ten (10) Year to Collect on Tax Issues

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 and the IRS doesn't even want you to know there is a 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 stop paying taxes.

How Are We 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!!  

 

We offer 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 resolving your particular set of tax problems. The only way we can confirm the best solution in resolving your tax issues is if we take the time to truly rely on factual information. We 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 and resolve your IRS Tax Balances.

 

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!

OUR GUARANTEE: Our Free Confidential IRS Check-Up will not awaken the IRS, expose you to collections or have any kind of negative impact on current status. We are here to fix issues, not worsen your position!

 

Contents for IRS Statute of Limitations (click to navigate):

How Long Can the IRS Collect on unpaid tax?

My IRS Balancee is Older than 10 Years so why hasn't it expired?

Will the IRS Notify Me Once the Statute Date Arrives?

How Do I Know if My Statute Date Has Arrived?

My 10-Year Statute Has Expired. Now What?

My 10-Year Statute Has Not Expired. Now What?

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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 on this balance. 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 we 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 an unpaid tax. After that time has passed, the IRS can no longer legally collect the balance 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 balances expire is known in IRS-lingo as the Collection Statute Expiration Date, or CSED.

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My Tax Issue Was Assessed More Than 10 Years Ago And Has Not Expired. Why?

IRS Balances can only legally be collected 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". Events that stop or "toll" the statute of limitations from running include:

 

  • Filing an Offer in Compromise -- the statute of limitations does not run the entire time your Offer is under review, including any Appeals that you exercise.

  • Filing Certain Appeals -- the statute of limitations does not run the entire time an IRS Appeal is pending, in most cases.

  • Filing Bankruptcy -- the statute of limitations does not run the entire time you are under the protection of the bankruptcy courts or for the six months following the discharge or dismissal of the bankruptcy.

  • Filing a Lawsuit Against the IRS -- the statute of limitations does not run while litigation against the IRS is pending.

There are a few other things that stop the IRS statute of limitations from running, but these are by far the most common.

In general, during any time period in which the IRS is legally unable to pursue you for collection of the unpaid tax, the statute of limitations is not 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.

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Will the IRS Notify Me Once the 10-Year Statute Expires?

No, the IRS is not required to notify you once the balance has expired.

Although the IRS cannot pursue collection of the balance once the statute has expired, it is important that balances are confirmed to be fully written-off and even obtain official IRS documentation so the IRS can never legally collect against this balance 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 balance(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 unpaid 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 owe the IRS this unpaid tax.

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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.

 

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My Statute of Limitations Has Expired - Now What?

If the IRS Statute of Limitations has expired, congratulations! All that remains is making sure the balances are fully written-off, including all penalties and interest that have accumulated over the years.

We can actually force the IRS to permanently write-off the balance from your account so it will show as a zero balance and even obtain IRS documentation to prove this effective write-off.

We will also work with the IRS to ensure that a Release of Federal Tax Lien is issued so you can begin the process of repairing your credit and provide documentation of this Release of Lien to anyone who is concerned about the lien and requires proof that your lien is fully resolved.

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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 aggressive collection action without doing anything that will stop the clock from running.

The most common options in this circumstance are either a low monthly payment plan or negotiating for your account to be placed into currently not collectible status.

We generally recommend against attempting an Offer in Compromise if your statute of limitations is close to expiring soon because the clock stops throughout the entire Offer process.

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Your Next Steps

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There is no risk and no obligation. We can really simplify this entire process for you!

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Colonial Tax Consultants, LLC

425 S Cherry St, Suite 430

Denver, Colorado 80246
Phone: (303) 573-3755