Venar Ayar- Does Your Tax Debt Ever Expire?

The IRS generally has ten years to collect your tax debt from the time the tax is assessed. This period can be extended if certain events take place that toll the statute of limitations of tax debt collection.

Key Insights We Will Discuss:
Events that could extend the collections period for your tax debt.
How to determine when your tax debt will expire.
Options when the collections period is about to expire on your tax debt.

The Collections Statute Expiration Date (CSED)
The CSED is the date your tax debt officially expires. Once that occurs, the tax debt is no longer legally enforceable.

The CSED is generally ten years from the date of tax assessment. Tax is considered assessed when you file a return or when a deficiency assessment is made.

Events That Extend Your CSED
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Venar Ayar - Consequences
Are You Unable To Resolve Your Tax Debt?

Very few things in life are as stressful as owing the IRS money, especially if you do not have the funds to pay what you owe. “So what should I do?” You are probably wondering. Well, this should not be a complicated issue if you can get the services of a proficient tax defense attorney. Since what you do at this juncture will matter a lot, it is important that you do the right thing to avoid legal trouble. Here are a couple of things to keep in mind if you are unable to resolve your debt.

The Don’ts
1. Failing To File Returns

The first and most tempting mistake that most people make when they realize they are unable to pay their taxes is not filing returns at all. While this seems like a good idea, it will lead to more penalties. The IRS automatically places a 5% penalty each month up to 25% if you do not file your taxes. Furthermore, you will also be expected to pay interest on the total bill until it is paid in full.

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