IRS Statute of Limitation

Understanding the IRS Collection Statute

The IRS generally has 10 years from the date of assessment to collect unpaid taxes. This is known as the Collection Statute Expiration Date (CSED). Once this period expires, the IRS can no longer legally collect the tax debt, and any remaining balance is forgiven.

However, certain actions can extend or "toll" this statute, giving the IRS more time to collect. It is critical that you understand your specific Collection Statute Expiration Dates and avoid taking actions that extend the IRS's ability to collect.

What Can Extend the Collection Statute?

• Filing an Offer in Compromise (the statute is paused while the OIC is pending)
• Filing for bankruptcy
• Requesting a Collection Due Process hearing
• Being outside the United States for more than 6 months
• Signing an installment agreement (in some cases)

Why This Matters

Everything with IRS is based upon these Collection Statutes. Understanding your specific expiration dates is essential to developing the right strategy for resolving your tax problems. In some cases, the best strategy may be to run out the clock rather than pursue an Offer in Compromise that would pause the statute.

Our Senior Consultant, Rick Peart, reviews collection statute dates as part of every free consultation to ensure you have complete information before making any decisions.

Do not allow the IRS to extend their ability to collect. Contact us for a free consultation to review your specific Collection Statute Expiration Dates.