subject: IRS Statute of Limitations: Do Taxes Ever Expire? [print this page] Many Americans believe that an IRS debt a debt for life, and that the tax collectors, they can-to-grave dog. Fortunately, this is not the case and there are statutory limits on the ability of the IRS to examine and collect taxes. Taxes expire at a certain time and in some cases IRS does not legally authorized to receive the money they collect.
Basically, IRS has 10 years from the date they send their first bill to collect the taxes.
The10-year rule does not apply to the states. Some, no statute of limitations, such as California and the tax collector may, in fact, you dog forever. The federal government tax collectors must receive the money before the clock expires.
For tax returns after the 5th November will be formed is 1990, not the IRS, the tax after 10 years from the date of the initial assessment absent special circumstances. Special circumstances that the statute can be extended are: a bankruptcy is not completed orwhere the tax is not done; submitting an offer-in-compromise, or the signing of a Form 900 waiver allows the United States more time to collect the tax. It is also possible to sue for the government to reduce the tax claim ruling before the 10 years expires.
If you never make a return, there is no statute of limitations by IRS that you save it, but as a matter of policy, IRS generally requires only non-filers in the records of the past 6-7 years. If IRSFiles for you, by you have a proxy for return (SFR), they earn 10 years from the date they file the SFR, by you. If a Federal Tax Lien is on file against you, it expires and becomes invalid if the underlying law expires.
You can find out when the law expires on your tax debt by requesting a Record of Accounts (ROA) by IRS for each tax year, you owe. If you can not afford to pay to the tax, your account may be entitled to be placed on a "temporary hardship"Status. It may be possible to "ride out" the statute in trouble if you qualify. A forthcoming law could also be a positive factor for an offer-in-compromise.
