Collection Expiration Statute Date

It is well known to the public that IRS generally has 3 years to audit your tax returns after filing. If you underreport income by more than 25% IRS has 6 years to audit. But very few people know about collection expiration statute date (CSED).


IRS has a little secret that they will never disclose to you voluntarily: there is a limit on how long they can collect tax debt and that limit is 10 years. It is important to understand that is not straight 10 year period of time. The IRS clock generally starts with an assessment date. It is the date after tax return is filed and tax is assessed. If return is not filed there is no statue of limitation. IRS can go back as long as they want to collect past due tax debt. Certain tax events can put the clock on hold or reset the timer. If you do not file a return and IRS forcefully files a substitute return for you, clock does not start until you sign such return. If you amend your tax return statute new assessment date moves forward.


It could be a simple as wait out that period of time but once the 10 year expiration date approaches IRS may force you to sign a waiver of 10 year statute in return for not going after your bank account and wages if there is any. It may or may not happen in your particular situation.


Some folks try to call IRS and find out when the clock will run out. If you are in collections with IRS it would not be a good idea to make such a call. IRS collection unit is in business of COLLECTING TAX and will ask you many questions before they release any info about your account such as what is your phone number, what is your address, where you work, where you bank, etc. Such phone call can trigger intense collection action against you.


Have Atlanta Tax Resolution and Nicholas A. Trishin, CPA do that instead. We utilize practitioner priority phone line independent of collection unit. We also have access to IRS online database to pull your returns and account records electronically. That allows us to obtain a lot of information on your account without triggering any red flags with IRS.


To get started today please submit your information via consultation form or simply call Nicholas A. Trishin, CPA directly at 404-585-1040.

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