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

Your CSED will be extended whenever an event occurs that temporarily prevents the IRS from collecting your tax debt. This could include any of the following actions:

Submitting an installment agreement request or Offer in Compromise
Declaring bankruptcy
Requesting a Collection Due Process hearing
Requesting innocent spouse relief
Living overseas for six consecutive months
All of these periods will be tacked on to extend your CSED.

Determining Your CSEDs
If you owe taxes for multiple years, the tax debt for each period will have its own CSED. You can determine all of your CSEDs by having a tax attorney request your tax transcripts from the IRS.

If any of your CSEDs have passed, the IRS won’t be able to seek collection of the tax debt for those periods.

What to Do if Your CSED Is Approaching
The IRS may become more aggressive in collecting the tax debt if your CSED is approaching. If you have assets or wages that can be seized, expect the IRS to consider issuing a tax levy.

You have the option to negotiate an installment agreement, submit an Offer in Compromise, or simply wait out the statute of limitations. Your best option will depend on your unique circumstances.

Executive Summary
The IRS has ten years to collect your tax debt
This period can be extended if certain events take place
You can determine your CSEDs by having a tax attorney request your tax transcripts

Have a question? Contact Venar Ayar.