Has my tax debt statute of limitations expired?

The Internal Revenue Service typically operates within a 10-year window, commencing from the date your tax obligation was assessed, to pursue the tax due, along with any accompanying penalties and interest. This window is known as the Collection Statute Expiration Date (CSED).

Your account may involve multiple tax assessments, each governed by its own CSED. These assessments could encompass:

• The original tax liabilities upon filing your federal tax return.
• Supplementary taxes resulting from amended returns.
• Balances derived from Substitute for Return filings.
• Additional taxes uncovered during audits.
• Civil penalties.
• Various penalties and interest accruals.

Various laws influence the CSED, and several actions or circumstances can influence its duration.

Determining if a CSED applies to your situation:

Upon assessing tax liabilities to your account, the IRS issues a notice or letter outlining the taxes owed, along with penalties, interest, the rationale behind the charges, and the subsequent steps to be taken.

Locating a CSED:

You can find a CSED in your account transcript through different means:

• Accessing your transcript online or requesting it by mail through various avenues.
• Reviewing the Transactions section of your transcript. Identify a 3-digit IRS transaction code paired with a corresponding date. Typically, this date reflects the CSED, plus any additional time mandated by law. Numerous events can impact a CSED, and you can reach out to the IRS to confirm the final date for collecting a tax debt for a specific period.

To obtain your CSED or verify its accuracy as displayed on your transcript, you may contact the IRS through various channels listed in their communication.

Adjustments to the collection timeline:

The duration for tax collection can be either suspended or extended, thereby influencing the CSED.

Certain circumstances can suspend or extend the 10-year CSED. When legal restrictions hinder tax collection, the CSED is usually suspended, pausing the collection timeframe. Conversely, when authorized by law to prolong the 10-year limit, the CSED is extended, allowing continued tax collection.

Examples of events that impact the 10-year expiration date include:

• Requesting an installment agreement.
• Filing for bankruptcy.
• Submitting an offer in compromise (OIC).
• Requesting a collection due process hearing.
• Filing for innocent spouse relief.
• Being in a combat zone or certain types of military service.
• Residing outside the United States for an extended period.
• The IRS filing a Substitute for Return on your behalf.

If you settle a tax debt after the CSED lapses, you can seek a refund of any overpaid amount before the Refund Statute Expiration Date. The IRS may also inform you through correspondence about any payments made beyond the collection period.