IRS Tax Issues: 10 Isn't Such a Magic Number. The IRS Can Extend The Statute of Limitations
IRS Statute of Limitations: The IRS Statute of Limitations is the IRS Collections Period. Basically, the IRS Statute of Limitations is the amount of time the IRS has to collect on your Tax Debt. This is typically 10 years from the date that the Tax Debt is assessed. However, if an IRS Deadline Extension takes place, the IRS Statute of Limitations time may stretch on longer than the typical IRS Collections Period. A number of actions can cause an IRS Deadline Extension of the IRS Statute of Limitations. Read our list to make sure you haven't accidentally triggered an IRS Deadline Extension.
IRS Deadline Extension of the IRS Collections Period: The IRS ten-year IRS Collections period or IRS Statute of Limitations starts when the IRS officially determines you owe the debt. But there are several ways the IRS Statute of Limitations can be extended.
IRS Deadline Extension actions that will cause an IRS Deadline Extension of the IRS Statute of Limitations include
-IRS Deadline Extension: Filing An Offer in Compromise.
-IRS Deadline Extension: Being out of the United States
-IRS Deadline Extension: Filing for Bankruptcy
-IRS Deadline Extension: Being in litigation with the IRS
-IRS Deadline Extension: Request a Collection Due Process Hearing
IRS Actions Particular IRS Actions that will extend the IRS Collections Period or the IRS Statute of Limitations include
-IRS Collections Period Extension: Suing you in Federal Court. Don't worry, this usually will not happen unless you owe a substantial amount of money to the IRS.
-IRS Collections Period Extension: Having you sign a Waiver form. This may be required if you want to make an "Installment Agreement" with the IRS.
IRS Collections Period: I'll be honest with you. The IRS will still continue to call you, even after the Statute of Limitations have expired. And the taxpayer usually doesn't even know the IRS's time to collect have expired. So what can you do if you don't know how old your debt is? You can actually have access to your IRS computer file. Here's how to get it:
-Call the IRS and request your Master File Transcript. (MFTRA)
-Give your Social Security number
-Say you want files for all tax years
But don't be too discouraged if you can't understand the papers you receive. These forms will be full of IRS technical terms, and most people can't decipher them. You can always contact a qualified Tax Professional who can help you understand the IRS and their procedures better.