If you have unpaid taxes that are due to the IRS, how long can they continue to attempt to collect them?
Per the collection statute expiration date, the IRS generally has 10 years from the date they assess your tax balance to collect taxes owed. This means that, after 10 years, the IRS must write off your debt as bad debt and they are no longer entitled to collect the balance from you. This happens more often than most people think!
It is important to note, however, that certain actions extend (called tolling) the 10-year collection period. Some of these actions may include filing for bankruptcy, requesting a collection due process hearing, requesting an installment agreement, or filing an Offer in Compromise. These are just some actions that toll the collection period, so please visit the IRS website here to see what other actions may impact your particular situation.
Several other unique factors could play a part in how long the IRS has to collect a debt. For example, for individuals on Currently Not Collectible (CNC) status, the statute period continues to run while you are in CNC status and, if you remain in that status until the ten-year period expires, the IRS will write off the debt. Another example is payroll tax liabilities where the IRS did not assess a trust fund penalty and the business is not able to pay off the debt. In these cases, we often see that the IRS has to write off the debt as a bad debt.
How do I know if I have unpaid taxes due?
The IRS will always send you notices to let you know that you owe them additional tax. If you ever receive any type of notice from them, it is always important to hold onto these for your records – and, when possible, to respond to them by the deadline listed on the notice. This will save you additional heartache in the future. If you believe you may owe the IRS additional tax but do not have any notices or have lost or misplaced them, you can always check the status of your account by
checking your transcript on the IRS website or calling the IRS at 800-908-9946.
What if I am unsure about the information the IRS is providing me?
If you have an old tax debt, we recommend that you reach out to the IRS to find out how much time is remaining on the collection statute. Unfortunately, the IRS can make errors when calculating their collection statute expiration date, so you want to verify the notices you’ve received have accurate information. Calculations from a study done by TIGTA (Treasury Inspector General for Tax Administration) estimated that the IRS makes errors in their collection statute expiration close to 40% of the time – so when calling the IRS, ask them to walk you through their computations.
What if I don’t want to deal with the IRS alone?
This is where our Tax Debt Relief team can come in. If you owe the IRS tax debt and are unsure where to start, please reach out to us for a
free, no-obligation consultation so we can look at your unique case. After that, we can offer you a comprehensive assessment and discuss the best course of action for your particular situation.
For more information, please check out the video below, visit our website, or reach out to our Customer Service team at 800.922.8348 and they will be happy to answer any questions you might have.
