Generally speaking, the Internal Revenue Service has a maximum of ten years to collect unpaid taxes. After that period has elapsed, the obligation is completely erased and removed from the taxpayer's account. This is considered “amortization”. You have been audited by the Internal Revenue Service (IRS) and it has been determined that you owe money to the government.
So, you may be thinking that you are now in trouble for good. However, that's not exactly the case. Although the IRS doesn't share it widely, every IRS audit tax debt has an expiration date of the collection statute (CSED). Generally speaking, the IRS has 10 years to collect an unpaid tax debt, after which the debt is eliminated.
Towards the end of the CSED, the IRS tends to be more aggressive in its collection efforts, hoping that the taxpayer will pay as much as possible before the deadline or agree to extend it. As a general rule, there is a ten-year statute of limitations for IRS collections. This means that the IRS can attempt to collect your unpaid taxes for up to ten years from the date they were evaluated. With some important exceptions, after the ten years have elapsed, the IRS must stop its collection efforts.
Every year, the statute of limitations expires for thousands of taxpayers who owe money to the IRS. Attempting to use an impending CSED as an IRS tax debt strategy should only be considered under the guidance of a licensed tax relief specialist, such as Landmark Tax Group. For information on IRS initiatives to facilitate law enforcement due to COVID-19, see The IRS Facilitates Compliance Initiatives During the Coronavirus Pandemic. If your statute of limitations period is coming to an end and you still owe a significant amount of money to the IRS, IRS staff can offer you an installment agreement with attractive terms so that you agree to extend the collection period.
While it is supposed to begin when the tax was originally calculated, the CSED is frequently the subject of controversy between tax debtors and the IRS. In certain situations, the IRS can withdraw a federal tax lien notice even when you still owe the tax debt. As former senior IRS collection agents, the professionals at Landmark Tax Group know how the IRS works and how to protect you and your assets. During the consultation, a tax debtor and a tax professional can understand together the scope of the tax problem, discuss the precise options available, and determine the best way to resolve the matter together.
During the consultation, a tax debtor and a tax professional can understand together the scope of the tax problem, discuss the available options, and determine the best way to resolve the matter. The IRS can also confiscate your property (including your car, boat, or real estate) and sell it to settle the tax debt. One is to have a tax relief professional negotiate with the IRS a possible reduction in total tax debt. We can file a federal tax lien notice in the public registry to notify your creditors about your tax debt.
The statute of limitations begins on the day the IRS “officially evaluates the tax on its tax return,” that is, it includes the taxes due on the books. Attempting to use an impending CSED as an IRS tax debt strategy should only be considered under the guidance of a licensed tax relief specialist. Another is to have that tax expert establish a financially feasible installment plan with the IRS. The IRS can't pursue it forever, and because of the IRS Reform and Restructuring Act of 1998, taxpayers are a little relieved if the IRS collection division seeks the balance owed by the IRS.
Documentation that accredits the tax debtor is needed in cases involving the removal or release of a federal tax lien, which is a necessary step to begin repairing financial and credit profiles...