Time does run out for IRS to collect back taxes

There may be many people in California who don't know that the IRS only has so much time to collect taxes. The statute of limitations on collecting back taxes is 10 years. After that time, taxpayers are no longer liable for the taxes, but getting to the 10 year mark can be difficult.

Not only will it be detrimental to a taxpayer's credit score to owe money to the IRS, but it can also open a taxpayer to aggressive collection efforts, especially as the tax debt reaches the 10 year mark. In addition, there are several circumstances in which that statute of limitations can be extended that taxpayers need to know about. There are several circumstances that can add time to the 10 year statute of limitations.

Things such as filing for bankruptcy, an Offer of Compromise, or any other kind of relief available to a taxpayer can add time. This is because the IRS's ability to collect the tax debt is stopped during these times. In response to that, there are certain amounts of time allotted back to the IRS based on how long it takes these circumstances to be completed.

It is also possible for a taxpayer to waive the statute of limitations, but this must be done in writing. California taxpayers who receive notices from the IRS that they owe back taxes may benefit from understanding all of the options available to them. First and foremost, however, every taxpayer should be careful not to waive any of their rights without first understanding exactly what that could mean.

Source: wpmaitlandobserver.com, "IRS has only 10 years to collect tax debt," Peter Pappas, June 12, 2013

No Comments

Leave a comment
Comment Information

Contact the Law Office of Williams & Associates

For more information about our tax law services, or to discuss your tax matter, call our Sacramento office at (916) 488-8501 or toll free at (800) 684-7147. You may also send us an inquiry via email.

Contact the Firm

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location:

3600 American River Drive, Suite 135
Sacramento, CA 95864

Toll Free: 800-684-7147
Phone: 916-488-8501
Fax: 916-488-8196
Sacramento Law Office Map