Statute of Limitations

The IRS has just ten (10) years from the date of a tax assessment to collect the tax from the taxpayer for tax year in question.

This is called the Collection Statute

When Does the Collection Statute Start to Run?

The statute starts on the day an IRS assessment is made.

Generally, the dates of assessment are:

Filed tax returns – The date you mailed the tax return plus six weeks.

Audit Adjustments (agreed) – The date you signed the auditor’s report plus three weeks.

Audit Adjustments (unagreed) – The date the appeals process and the tax court process (if any) is completed and the tax court judge has issued his or her ruling.

What Will Cause the Collection Statute to be Extended?

The Collection Statute can be extended (tolled) by one or more of the following acts or situations:

The filing of a bankruptcy petition - The statute is extended for duration of the bankruptcy proceedings.

The filing of an Offer in Compromise - The statute is extended for duration of the Offer or one year, whichever is greater.

The signing of a waiver extending the statute - The statute is extended to date indicated in signed waiver. Never sign a statute extension without first consulting your tax advisor.

The taxpayer is out of IRS jurisdiction – The statute is extended for duration taxpayer was out of IRS jurisdiction.

You Have the Right to Tax Representation

If you have been contacted by the IRS or your state's Department of Taxation, or have received tax liens, levies or notices of IRS intention to do so, contact us at 888-466-4706 or fill out our online form without delay to discuss the details of your specific tax situation.