Tuesday, August 12, 2008

Statute of Limitations

Question: I recently received a letter from the IRS saying that I owe taxes from 2001. I thought that the IRS cannot collect after 7 years.

Answer: The Statute of Limitations for the IRS to collect on a Federal tax liability is 10 years from the time that the liability was assessed. There are many factors that can extend this 10 year period, giving the IRS additional time to enforce collection. Some of these factors include filing an Offer in Compromise, filing a bankruptcy that includes the tax liability, and residing overseas for a continuous period of at least six months. A competent representative can research the origin of the tax liability, statutes of limitation, and options available for reaching an agreement with the IRS that will prevent the enforcement of collection.

1 comment:

Brian Watkins said...

CSEDs are an often-asked about issue. You've grappled the key concepts well here; for further reading I would recommend viewers visit our article on CSEDs as well.

Nice post.

~Brian
http://taxsolace.blogspot.com