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Collections Statue Expiration

The Internal Revenue Service and other State and Local Taxing Authorities only have a certain amount of time to collect from you from the date of filing. Yes, there are things that will toll the statute of limitations, i.e. bankruptcy filing, offer in compromise filings; however if no fraud is involved and the tax returns have been filed, either by you or the taxing authority, then generally the debt will not stay on your record forever.

Please note the fact that the tax debt may not remain forever is not meant to inform you to do nothing and and just wait out for 10 years or however long until the tax liability goes away – this is not the cure; the reason for mentioning the existence of a statute of limitation on collection is actually meant to inform you that the Internal Revenue Service and/or State Taxing Authorities know this and when it comes closer to the running of the statute of limitations (the time allowed for them to collect is running up) these agencies through their agents and employees will want to collect before it gets to late to get anything. This may be as harsh as seizing assets, levying wages, levying bank accounts, placing liens on property, contacting you via telephone or in person to get the tax liability paid. In fact, the Internal Revenue Service has a division specifically created to collect the tax liability owed and have revenue officers to collect as well.

There are ways to stop the Internal Revenue Service and State Taxing Authorities to not collect in this time frame, generally the taxpayer must be compliant in filing all his returns, second the taxpayer can either pay the tax in full, third if the taxpayer is unable to pay the tax in full then he can enter into an installment agreement (which can be negotiated), fourth if the taxpayer can’t afford to make payments and it creates a economic hardship the taxpayer may qualify for a hardship status whereby they are placed on currently not collectible status.

At the Carr Law we can help in tax investigations and we can help resolve the problems of tax debt collection.


Collections Statue Expiration