Understanding the IRS 10-Year Tax Collection Statute: Guidance for Taxpayers
IRS 10-year tax collection statute
Understanding the IRS 10-Year Tax Collection Statute: Guidance for Taxpayers
Dealing with tax debt can be overwhelming. It’s essential to understand the IRS’s time limits for collecting these debts. Generally, the IRS has a 10-year window, known as the Collection Statute Expiration Date (CSED), to collect assessed taxes. This period begins when the tax is assessed, typically when your return is processed or when the IRS files a Substitute for Return (SFR) if no return was filed. However, certain actions can pause or extend this 10-year period. Events such as bankruptcy filings, entering into installment agreements, or submitting an offer in compromise can toll the statute of limitations, giving the IRS more time to collect.
Key Timeframes in IRS Tax Collection
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3-Year Assessment Period: The IRS has three years from the date a timely tax return is filed to audit or assess additional taxes. If you filed late but did so voluntarily, the three-year period starts from the filing date.
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No Time Limit for Unfiled Returns: If you haven’t filed a tax return, there’s no statute of limitations for the IRS to assess taxes. They can file an SFR and initiate collection at any time.
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6-Year Rule for Substantial Understatement: If you underreport income by 25% or more, the IRS has six years to audit and assess additional taxes.
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No Time Limit for Fraudulent Returns: In cases of suspected fraud or willful tax evasion, the IRS can assess and collect taxes at any time.
Understanding these timeframes is crucial for managing your tax obligations effectively.
How Our New York Law Firm Can Assist
Navigating IRS regulations and statutes can be complex. Our law firm has experience assisting New York individuals and businesses with tax debt issues. We can help you:
- Evaluate your specific tax situation to determine applicable statutes of limitations.
- Explore options like installment agreements or offers in compromise.
- Represent you in negotiations with the IRS to seek favorable resolutions.
Personalized Guidance
If you’re facing IRS tax debt challenges, don’t navigate them alone. Contact our experienced New York tax lawyers today for a consultation.
We’ll provide personalized guidance to help you resolve your tax issues effectively.
Contact our experienced lawyers today for a consultation.
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IRS 10-year tax collection statute
