Statute Of Limitations

The IRS has 10 years to collect outstanding tax liabilities

Believe it or not, Congress actually set a time limit for the IRS to collect a tax liability. The IRS has ten years from the date of assessment of a tax liability (the date the liability is formalized) to collect that tax. Additionally, the IRS has a three year time limit to decide whether it wants to audit a tax return.

Generally, the clock starts when the return is filed. (The flip side to this is the clock never starts if you have not filed the return.) The 10-year period can also start with an assessment from a tax audit, or a proposed personal assessment from unpaid payroll taxes.

If the IRS doesn’t collect the full amount in the 10-year period, then the remaining balance on the account disappears forever because the statute of limitations on collecting the tax has expired. This Collection Statute Expiration Date (or CSED) can be a useful tool if the circumstances are right. At Huntsman | Lofgran, we have successfully helped clients reduce and settle their tax liabilities by applying the CSED rules. Review our testimonials for clients' experiences. To receive a free and thorough consultation as to whether an expiration of the collection statute could help you, contact us today or call 801.838.8900.

It is important to understand there are many factors which can extend these collection statutes, including innocent spouse relief, or filing a bankruptcy that is not discharged. Determining when the statute of limitations expires is important to know what the best option is to resolve your case!

As local Salt Lake City Tax Attorneys focused on solving IRS and state tax problems, we can help you decide if the IRS Statute of limitations may be helpful with your IRS tax debt problem. Please call the Law Office of Huntsman | Lofgran at 801.838.8900 or contact Wasatch Front /Salt Lake City Utah Tax attorney Michael Lofgran for your free no-obligation, tax consultation.