Question: Does the 10 year collection statute begin when the civil penalties are due?Â Or, when the installment agreement has begun?Â Or, as in my case, when the installment agreement was reinstated?
Answer: The 10 year Collection Statute Expiration Date (CSED) begins on the ASSESSMENT date, not when the taxes are due and not when you begin an Installment Payment Plan.
There are exceptions to this rule, including if the taxpayer agrees in writing to allow the IRS more time to collect the tax by signing a waiver
If you are approaching the 10-year date, you should request copies of your IRS transcripts to verify the assessment date.
The IRS will NEVER inform you when the 10 years are up. They will continue to send you invoices and collect on your tax debt. It is up to the taxpayer to prove to the IRS that the 10 year CSED has in fact expired.
We have saved our clients millions of dollars by advising and strategizing with them to wait out the 10 year expiration date, especially if their debt is close to expiring. We may also be able to simultaneously obtain a certificate of Lien Release (if a lien was filed) so that your credit score can have an opportunity to recover as well.
Got questions about IRS audits, wage garnishments, bank levies, payroll tax problems, or income tax relief in general? Visit the Tax Resolution Services web site for a free tax relief consultation or call 866-IRS-PROBLEMS.
More Tax Help, IRS News and Tax Relief Tips:
- KLOS Tax Tip #44: Individuals Get a Tax Break – But Get Tax Help if You Owe Back Taxes!
- Michael Rozbruch Interviewed in Opportunist Magazine
- We’ve Expanded to Help More Taxpayers Resolve Their IRS Tax Problems!
- IRS Announces Unprecedented Opportunity for Recession-Burdened Americans to Settle Outstanding Tax Debts
- Talking Tax Resolution with Fox 11 Tony Valdez
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