Understanding the IRS Substitute for Return
Click to ask Mike Ask Mike The Internal Revenue Service (IRS) Substitute for Return (SFR) is a term many taxpayers
Collection Statute Expiration
Have you ever wanted to know when your tax debt would expire? To find out when the IRS’s clock finishes ticking on your financial history, you need to know the Collection Statute Expiration Date (CSED).
Steps you need to know:
1. Request Your IRS Transcripts:
Online Request:Visit the IRS website: Navigate to www.irs.gov, the official IRS website.
Access the “Get Transcript” tool: Locate and use the “Get Transcript tool” available on the website.
Identity verification: Follow the online prompts for identity verification, providing personal information securely.
By Mail: Download Form 4506-T: Download Form 4506-T from the IRS website.
Fill out the form: Complete the form thoroughly, specifying the type of transcript needed.
Mail the form: Mail the completed form to the address indicated on the IRS website. Allow time for processing.
Online Request:
By Mail:
2. Select the Appropriate Transcript: Once your transcripts are received, focus on the “Account Transcript” as it provides a comprehensive overview of your tax account.
3. Understand the Transcript Sections: Key Sections: Pay attention to sections such as “Assessed Balance,” “Payments,” “Penalties and Interest,” and “Transactions Codes.”
These sections offer detailed information about your tax account.
4.Locate CSED Information
- Assessed Balance Section: Find the section specifying the assessed balance for each tax year. Note the assessment date for each tax year
- Transaction Codes (TC): Look for transaction codes associated with assessments. The crucial code is TC 150, which indicates the initial assessment. The date associated with TC 150 is vital for CSED calculations. Code 150 indicates that the IRS processed and added your tax return to its main file.
- CSED Calculation: Calculate the CSED by adding 10 years to the date associated with TC 150. Keep in mind, the CSED is generally 10 years from the date of assessment.
- Check for Suspensions: Examine the transcript for transaction codes related to suspension events. For example, TC 520 may indicate a suspension due to bankruptcy, and TC 480 could signify a suspension for an Offer in Compromise.
- Look for Code 608: If your CSED has already passed for a particular tax year, you may see Code 608 listed on the IRS transcript for that year.
5. Verify CSED with Notices: Cross-reference with Notices: Compare the calculated CSED obtained from the transcripts with any IRS notices you’ve received.
Ensure consistency and identify any discrepancies that may need clarification.
6. Contact the IRS for Verification: Call the IRS: Dial the IRS main helpline at 1-800-829-1040.
Request verification of the Collection Statute Expiration Date for your specific tax debt.
7. Discuss Options: Engage with the IRS Representative: Initiate a detailed discussion with the IRS representative about your findings.
Inquire about any factors that might affect the CSED and explore potential options if it has expired.
8. Take Detailed Notes: Document Details: Record names, dates, and reference numbers during your conversation with the IRS representative.
Maintain thorough notes for future reference and follow-up.
9. Follow Up: Address Requirements: If the IRS representative suggests specific actions or documentation, promptly follow through.
Submit any requested information and retain records of submissions for your records.
Transaction Codes and Their Meanings:
TC 150: Initial assessment. Note the date associated with this code for CSED calculations.
TC 520: Suspension due to bankruptcy.
TC 480: Suspension for an Offer in Compromise
TC 680: If your CSED has already passed for a particular tax year, you may see Code 608 listed on the IRS transcript for that year.
Form 4506-T: Download this form - Click Here
Resource Links:
More resource links. - Click Here for more resource
Resource Links:
Statute of Limitations Overview: Click Here to learn more
Collection Statute Expiration Date CSED
: Click Here to learn more
When can the 10-Year Tax Debt Collection Statute Extended
: Click Here to learn more
The Three Types of IRS Statute of Limitations: Click Here to learn more
Conclusion: By understanding these transaction codes and sections in the “Account Transcript,” you gain precise information about the assessment date and any suspensions, crucial for accurate CSED determination. Always cross-reference with IRS notices and, when in doubt, seek professional advice to ensure accurate interpretation and compliance.
Important Tip: Not sure where to begin? Try our Tax Relief Finder tool. It helps you find IRS programs and gives recommendations for the best solution. Learn about our - Tax Relief Program Finder
Important Tip: Understanding the Tax-Relief process is an essential resource for individuals dealing with tax debt. It offers a road map guide, simplifying the steps needed to resolve tax-related issues- Tax-Relief Process
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Click to ask Mike Ask Mike The Internal Revenue Service (IRS) Substitute for Return (SFR) is a term many taxpayers
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Disclaimer: This is educational content, not legal, accounting, or tax advice.
