Statute of Limitations: Say Goodbye to Your 11-Year-Old Debts!
We have good news for those facing long-term back taxes: The IRS has a set time period to collect unpaid debt, and when it’s up, the slate is wiped clean! This time frame is a secret the IRS doesn’t want you to know. Its collection period is called the 10-Year Statute of Limitations (CSED), and it runs for one decade. When it’s up, your old debt disappears.
Knowing this secret may tempt you to “wait out the IRS” if you have back taxes approaching the 10-year mark. This can be advantageous, but unfortunately, the IRS’s policies are tricky. If you wait out the agency, it will use all of its legal tactics against you during that period. If you’re a business owner, that could include halting your operations. The IRS can also “stop the clock” in certain situations during the 10-year time period.
That could happen to you if you’ve done any of the following:
- Filed for bankruptcy
- Submitted an offer in compromise
- Filed an appeal
- Filed a lawsuit against the IRS
- Been out of the country for six months or more
- Signed a waiver to extend the CSED
- Deferred military service
Because of these complications and others, we do not recommend “waiting out the IRS” as a smart strategy for everyone. As we wrote on Page 1, it’s in your best interest to be proactive about your tax problems and reach out to the professionals on our team sooner rather than later. So contact us today! This is especially true if your back taxes are more recent. We will help you weigh your options and choose the best approach to resolve your debt.
That said, the statute of limitations is good news if you have back taxes that are 10 years or older. The IRS may have already written off your debt! To confirm that, you or our office must reach out to the IRS directly to find out. Once you receive confirmation the slate is clean, you can carry on with your life without worry. Get step-by-step guidance that will answer all of your questions on having your IRS tax debt expire by Clicking Here.