How much time has to pass before the IRS can no longer collect on a debt you owe them?
IRS Definition of the Statue
The relevant tax law says that the length of period for collection after assessment of a tax liability is 10 years.
Each tax assessment has a Collection Statute Expiration Date (CSED). The CSED is the amount of time the IRS has to legally collect a tax balance.
The CSED is usually 10 years from the date the IRS charged, or assessed, the tax. But in certain situations, the CSED is automatically extended. For example, it is extended when taxpayers:
- Request innocent spouse relief.
- Request a collection due process hearing.
- Apply for an offer in compromise.
- File for bankruptcy.
- Live outside the U.S. for six months or longer.
* In some circumstances, the IRS may ask that you extend the CSED for a specific period of time.
When the CSED expires, the IRS can’t collect any remaining balance. Ask a professional at Elite Tax Services to learn all your options if you can’t pay your taxes.
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