IRS 10-Year Statute of Limitations / Statute Expiration

How Long Can the IRS Collect a Debt?

The IRS generally has ten (10) years to collect a debt. After that time has passed, the IRS can no longer legally collect the debt and they write it off.

The ten year period is measured from the date that the tax was assessed, not when it was originally due. So, if you filed your tax return late the 10 year clock will not start running until you filed the return.

If you never filed a tax return, but the IRS filed one for you using a Substitute for Return / 6020(b) assessment, then the statute of limiations began running whenever that assessment was processed by the IRS on your behalf.

The date that your debts expire is known in IRS-lingo as the Collection Statute Expiration Date, or CSED.

How do you know when the tax was assessed?

You can try to estimate it if you have a general idea of when you filed your tax return. The easiest way, though, is to ask the IRS. We can do this through our Free Consultation -- one of the steps we take in every consultation is to find out when the tax was assessed, and when the statute of limitations expires.

Sometimes the IRS will refuse to tell you the exact date that the statute of limitations expires. If this happens, the best thing to do is obtain copies of your Account Transcripts which will tell us the entire history of your account. We can use those transcripts to determine when the tax was assessed, and we can then estimate when the expiration date should be.

My Tax Debt Was Assessed More Than 10 Years Ago And Has Not Expired. Why?

IRS debts can only legally be collected for 10 years, but there are many events that may stop that 10 year clock from running. This is known as "tolling the statute of limitations". Events that stop or "toll" the statute of limitations from running include:

• Filing an Offer in Compromise -- the statute of limitations does not run the entire time your Offer is under review, including any Appeals that you exercise.
• Filing Certain Appeals -- the statute of limitations does not run the entire time an IRS Appeal is pending, in most cases.
• Filing Bankruptcy -- the statute of limitations does not run the entire time you are under the protection of the bankruptcy courts, plus six months after your bankruptcy case is discharged or dismissed.
• Filing a Lawsuit Against the IRS -- the statute of limitations does not run while litigation against the IRS is pending.

There are a few other things that stop the IRS statute of limitations from running, but these are by far the most common.

In general, during any time period in which the IRS is legally unable to pursue you for collection of the debt, the statute of limitations is not running.

If you exercised any of these options in the past, there was probably a period of time that the statute of limitations was not running. In practice, this can make the statute of limitations longer than ten years -- sometimes adding several years to the clock.

Will the IRS Notify Me Once the 10-Year Statute Expires?

No, the IRS is not required to notify you once the debt has expired. They are not legally allowed to pursue collection of the debt, though, so usually you will just stop hearing from them if your debt has expired. If you have an old tax debt and it has been awhile since you heard anything about it, it is very possible that the debt expired and your problems are actually already resolved.

The IRS is also required to release any liens that are filed against you once the underlying debt expires, but they usually will not take the steps needed to do this unless you specifically ask them to do so.

How Do I Know If My Statute of Limitations Has Expired?

Call us to take advantage of our free consultation. One of the things we look at for every potential customer is how much time is remaining on the statute of limiations, because this can have a big impact on what strategy is best for you. Call us today at 866-573-3755.

There's no obligation, no catch, and no pressure.