IRS Collection Statue Expiration Date (CSED)
“It is a basic concept of law that once a statute of limitation has passed, no action barred by the statute may take place.”
–Procedurally Taxing
The IRS collections statute expiration date (CSED) is the date after which the IRS can no longer collect a tax debt.
When things are simple, the CSED is easily calculated as 10 years from the date of assessment.
This means that no matter how little the IRS has been able to collect on a tax debt assessed in April of 2007, they must cease collection on that debt in April of 2017.
However, when you’re working with the IRS, things are rarely as simple as you’d like. There are a handful of events that can result in extending the CSED date (sometimes called “tolling events”).
Events that extend your CSED include:
Submitting an offer in compromise
Submitting an installment agreement Tax court hearing
Appeals
Bankruptcy
Living in a foreign country for more than six months concurrently (including while on active combat duty) For the entire list, check the most recent version of the IRM. Each tolling event extends the CSED differently. Be sure to consult the most recent version of the IRM to see the full list of tolling events and how each affects the CSED. It’s important to be aware of these tolling events so that you know how to help your client avoid CSED extensions to the extent possible, but obviously some tolling events are unavoidable as you engage in the tax resolution process.
Just be sure that when you do something to extend the CSED, such as submit an installment agreement, that the extension is worth the desired outcome.
An IRS collection statute expiration date refers to the legal timeframe the IRS must collect a tax balance.
The CSED often ends the Government’s right to further pursue tax liability, i.e. 10 years from the tax assessment date.
For example, you waited until 2015 to file a return for 2013. The tax will be assessed in 2015 and the 10-year period begins to run on the same year. The expiration date is 2025.
In some cases, the CSED needs to be recalculated as IRS agents do not always recalculate them accurately.
The National Taxpayer Advocate reports that miscalculated CSEDs are one of the most serious tax problems experienced by individual and business taxpayers.
If a CSED is miscalculated beyond the actual CSED, the mistake may result in unlawful collection activity, which violates the taxpayer’s rights. Taxpayer Bill of Rights
Have a question on IRS Audits? Contact Keith Jones.
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Keith Jones CPA, TheCPATaxProblemSolver
One of the BEST Tax Relief Companies & Tax Professional that Advocates for YOU with Back Tax Filing!
Since 2005 Keith Jones has been the sole partner of Keith Jones CPA TheCPATaxProblemSolver.
His specialization is offering IRS tax debt relief, tax resolution & back tax filing to clients across this great country with an emphasis on clients in North Florida where he was born, raised, educated, and has lived his entire life.
With offices in Jacksonville, St Augustine, and Destin Florida, he provides tax planning, accounting, as well as tax preparation services to both individuals and businesses.
Specializing in payroll tax debt relief he runs a very successful practice area in which he is well versed and experienced.
Keith is a tax professional who has helped thousands of GOOD FOLKS solve their IRS tax problems restoring their financial freedom.
This he takes great pride in taking each case personally restores clients financial freedom, giving them peace of mind, a better night of sleep & often saving marriages keeping families together.
For most Americans, dealing with the IRS can be an incredibly overwhelming & high-pressure situation. It is not something they routinely deal with and do not know how to handle.
Keith is a tax professional who deals with these cases daily.
Keith has found that almost every single person he deals with is NOT a tax cheat or deadbeat, but someone who is not able to pay their tax debt due to a financial hardship, often which happened not of their own accord.
Usually, there is a sickness, tragic situation, job or business loss, or some other unfortunate circumstance leaving them scared and not knowing where to turn.
Keith takes this fear away immediately at sets clients at ease by educating them on tax debt relief programs available.
TheCPATaxProblemSolver understands your burden & strongly believes that being informed is one of the keys to successfully navigating the IRS tax relief programs to a fresh start restoring your financial freedom.
Keith was born and raised in the small coastal town of Port Saint Joe Florida and earned his Bachelor of Business Administration and majored in Accounting at Florida State University’s College of Business. He has been a licensed CPA in Florida since October of 1995.
In college and then while studying for his CPA he worked as an Auditor and as a Senior Tax Specialist with the Florida Department of Revenue.
After passing his CPA exam Keith served as Division Controller for the St. Joe Company where he was recognized nationally for his efforts by being inducted into the AICPA’s Business & Industry Hall of Fame.
Elected as a Regional Vice President by his peers for the Florida Institute of CPAs (FICPA).
Through the years, he has served the Accounting Profession and FICPA in many capacities, including as:
Past President of the Miracle Strip Chapter of FICPA
Past Regional Vice President of FICPA
Member of the Finance Committee for four years
Member of the Board of Governors for twelve years
Chairman of the FSU Accounting Conference where he was Chair of the Year
Trustee and Past Vice President of the FICPA Educational Foundation
Member of several committees
In his spare time, he enjoys the beach, walking, boating, and fishing as well as spending time with family.
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