"You don't want to fight this fight alone. You need experts. You need Tax Defense Partners™ If you owe $10,000 or more in back taxes, are under audit, or have unfiled returns, they can help." - Rush Limbaugh
IRS Expiration of Statutes - IRS Can No longer Collect Back Taxes!
The IRS generally has 3 years, from the date a return is filed, to Audit that return. For example, if you file your 2002 return on August 7, 2007, the IRS has until August 7, 2010 to audit that return. If the IRS determines that you had a 25% understatement of income in a given year under exam, they can go back and audit the last 6 years!
If the IRS alleges fraud or criminal activity, the statute is open indefinitely. The IRS can go back as far as they like in this case.
The IRS has 10 years from the date of assessment (usually close to the filing date) to collect all taxes, penalties and interest from the taxpayer. The taxpayer does not owe the IRS anything after the 10-year date has passed.
As with all IRS rules, there are exceptions to this rule. Examples include-
• If the taxpayer agrees in writing to allow the IRS more time to collect the tax by signing a waiver
In all of these situations the period for the IRS to collect is extended for a specific time, beyond the 10 years.
Taxpayers that are approaching this 10-year date should request copies of their IRS transcripts to verify the assessment date, so they can accurately compute when the 10-year statue to collect will expire.
• If the IRS is attempting to collect a tax liability which has expired under the 10 year statue, then the tax payer must inform the IRS in writing that they no longer have the right to collect this tax liability.
One of the services we provide is called a Collection Statute Expiration Date (CSED) Tax Transcript Analysis. We obtain special records of your account that the IRS has on your behalf. We analyze these to inform the client if the 10 year CSED has, or when it will, expire. If it has expired the IRS writes off (reduces it to $0.00) whatever the balance is for that particular year. The IRS will NEVER inform you when the 10 years are up. They will continue to send you invoices and collect on the debt. It is up to the taxpayer to prove to the IRS that the 10 year CSED has in fact expired. The IRS is barred, by operation of law, from collection on an expired debt.
We have saved our clients, literally, millions of dollars, just by advising, and strategizing with, them to wait out the 10 year expiration date, especially if they are close. This is a wonderful tool for resolution if you know how to use it. Generally, we can also, simultaneously, obtain a certificate of Lien Release (if a lien was filed) so that your credit score have an opportunity to recover as well.
Get help from our team of experienced tax attorneys and specialized tax resolution specialists to resolve your tax debt. Call us today toll free at 1-866-IRS-PROBLEMS for your FREE CONSULTATION.
*Estimates based on prior results; individual results will vary based on circumstances, including your ability to provide Tax Defense Partners™, with information that is accurate and timely. Resolution/settlement percentages exclude our fees. We do not guarantee that your tax liability will be lowered by a specific amount or percentage or that your tax liability will be paid off within a specific period of time. We do not assume any tax liability, make monthly payments to the IRS/State on your behalf or provide tax planning, bankruptcy, accounting or legal advice. Read and understand all service offerings prior to retaining TDP, including potential adverse impact on credit rating. Tax Defense Partners™. will offer possible solutions to a prospective client following the information gathered during the initial consultation. While solutions will be offered to client, there is no guarantee of results implied or otherwise.
TDP is the only national tax resolution firm comprised of experienced attorneys, CPAs, and tax relief professionals practicing as Tax Resolution Specialists certified by the American Society of Tax Problem Solvers (ASTPS). This is what makes us uniquely qualified to successfully solve IRS problems day in and day out. Our licensed professionals (every attorney, CPA and enrolled agent) must meet educational, experience and examination requirements prescribed by the ASTPS, a national, not-for-profit professional organization. The ASTPS certification applies only to tax relief professionals who are a CPA, attorney, or enrolled agent in good standing with the respective state that licenses/regulates him/her.
If you owe back taxes or are plagued by other IRS tax problems, we encourage you to get professional tax help from our team of attorneys, CPAs or tax relief professionals because you need Certified Tax Resolution Specialists in your corner when battling the IRS.