Many taxpayers are not aware of the Statue of Limitations that the IRS must abide by when collecting taxes. The date of your initial IRS assessment marks the beginning of your ten-year Statue of Limitations with the IRS. This statue allows taxpayers to be freed from their entire outstanding back taxes debt obligations if the IRS fails to collect all of the remaining debt by the end of the ten years.

A lot of taxpayers lose sleep at night because they fear that their IRS debt will never go away. If you have not signed a waiver allowing the IRS to take more time to collect the back taxes or if you have not filed for bankruptcy within those ten years, it is likely that you can “wait out” the ten years to be rid of your tax debt. Learn more about how you can take advantage of the Statue of Limitations to dissolve your IRS debt.

Once the Statue of Limitations expire, the IRS can no longer collect your back taxes. I have helped many clients settle their back taxes by telling them to wait until the expiration of their Statue of Limitations.

The couple below were able to get out of paying the rest of their IRS penalties by showing that their Statue of Limitations has expired.

CCH (http://intelliconnect.cch.com) reports:

Erroneous Abatement Did Not Stem from Clerical Error; Tax Could Not Be Reinstated Due to Statute of Limitations

A married couple was entitled to a refund of an amount erroneously abated by the government because the tax was not reinstated before the statute of limitations expired. The IRS itself had concluded that the erroneous abatement was not the product of a clerical error, specifically rejecting its agent’s contention to the contrary; therefore, the tax had actually been abated. The government provided no proof that the IRS’s position was erroneous.

Don’t let overwhelming IRS debt cost you more sleepless nights. You can get professional tax help from a tax attorney, CPA, or certified tax resolution specialist today by calling 1-866-IRS-PROBLEMS (1-866-477-7762) for your free consultation!

More Tax Help, IRS News and Tax Relief Tips:

1. Owe Back Taxes? Worry Not: Ten-Year Statue of Limitations Could Dissolve Your IRS Debt
2. Tax Help: How to Resolve Your Back Taxes & Prevent Tax Problems If You’re Short on Cash This Season
3. Don’t Miss Tax Help Tips on Bankruptcy From Nation’s Leading Tax Expert Brian Compton on the Big Biz Show-Thursday, March 18th at 1:40pm PST
4. Make Sure You Get Your Economic Stimulus Rebate By Filing Your Tax Return By October 15th
5. Tax Help For Offer in Compromise Applicants: New IRS Changes to Processing

Tags: Back Taxes, dissolve your IRS tax debt, expiration of statue of limitations, IRS tax debt, statue of limitations, tax attorney, tax help, tax resolution

This entry was posted on Wednesday, November 11th, 2009 at 10:48 am and is filed under Back Taxes, Seeking Professional Tax Help, Statutes of Limitations – Taxpayer’s rights. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.