How Long Does the IRS Have to Collect Taxes From You
The statute of limitations on the collection of a tax liability is 10 years. (Internal Revenue Code 6502.) After ten years the debt is wiped out. (continue to read for provisional conditions)
There are a number of ways the ten-year period can be extended.
1. The ten-year period does not start until you file your tax return and IRS assesses the tax against you. So NOT filing a return and hiding for 10 years won’t get your tax debt wiped out.
2. IRS can extend the ten-year period by suing you in federal court. This does not happen very often, so I am told.
3. If you file an Offer in Compromise, or traveling or living outside of U.S., or involved in a dispute with IRS, or file bankruptcy or request a Taxpayer’s Assistance, sign a waiver form or request any kind of hearing; your ten-year period is extended until any of these issues are involved.
usually IRS will make every effort to collect the Tax liability before the 10-year period is up. This includes garnishment of your wages and placing a levy on your bank account.
It is strongly suggested by www.taxeswilltravel.com that you contact a Tax Professional if any of these situations apply to you.
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Cassandra is a Registered Tax Professional and Instructor for Basic Tax Classes in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com providing online, tax resolutions. Ms. Ingraham provides, for her clients, Formal Introductions to Lenders for Accounts Receivable Funding (Factoring), Invoice Lines of Credit, Merchant Funding, and Small Business Loans |
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