The IRS has 10 yrs. to collect back tax debts.

The IRS has a 10-year statute of limitations for collecting unpaid taxes. This means that the IRS generally has 10 years from the date it assesses your taxes to collect them. If the IRS does not collect your taxes within this time period, you may no longer be obligated to pay them.

However, there are some exceptions to the 10-year statute of limitations. For example, the statute of limitations may be suspended or extended if you file for bankruptcy, enter a combat zone, or live outside the United States for an extended period of time.

What is a Statute of Limitations?

A statute of limitations is a law that sets a deadline for filing a lawsuit or other legal action. Statutes of limitations are designed to prevent people from being sued for old debts or claims.

The 10-Year Statute of Limitations for IRS Collection

The 10-year statute of limitations for IRS collection begins on the date the IRS assesses your taxes. An assessment is a formal notice from the IRS that you owe taxes. The IRS will typically send you an assessment notice if you fail to file a tax return or if you owe taxes that were not reported on your tax return.

Once the IRS assesses your taxes, it has 10 years to collect them. If the IRS does not collect your taxes within this time period, the statute of limitations expires and you may no longer be obligated to pay them.

Exceptions to the 10-Year Statute of Limitations

There are a few exceptions to the 10-year statute of limitations for IRS collection. These exceptions include:

• • Bankruptcy: If you file for bankruptcy, the statute of limitations for IRS collection may be suspended. The suspension will last until the bankruptcy court discharges your debts or closes your bankruptcy case.
  • Combat zone: If you enter a combat zone, the statute of limitations for IRS collection will be suspended. The suspension will last until 180 days after you leave the combat zone.
  • Living outside the United States: If you live outside the United States for an extended period of time, the statute of limitations for IRS collection may be suspended. The suspension will last for the time you are living outside the United States plus six months.

Other Considerations

It is important to note that even if the statute of limitations expires, the IRS may still be able to take collection action against you. For example, the IRS can still file a lien against your property or seize your assets.

Additionally, the statute of limitations does not apply to all tax debts. For example, there is no statute of limitations for fraudulent tax returns or for tax debts that were never assessed.

Conclusion

If you have unpaid taxes, it is important to understand the IRS statute of limitations for collection. The statute of limitations can protect you from being sued for old tax debts. However, there are some exceptions to the statute of limitations, and the IRS may still be able to take collection action against you even if the statute of limitations has expired.

If you have any questions about the IRS statute of limitations for collection, you should consult with a tax professional.

Additional Information

Here is some additional information about the IRS statute of limitations for collection:

• The statute of limitations for collection applies to both individuals and businesses.
• The statute of limitations applies to all types of taxes, including income taxes, payroll taxes, and estate taxes.
• The statute of limitations begins on the date the IRS assesses your taxes.
• The statute of limitations can be suspended or extended in certain situations, such as bankruptcy, combat zone service, or living outside the United States for an extended period of time.
• Even if the statute of limitations expires, the IRS may still be able to take collection action against you.

If you have unpaid taxes, it is important to understand the IRS statute of limitations for collection and to take steps to protect yourself from collection action.