COLLECTION STATUTE EXPIRATION DATE
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UNDERSTANDING COLLECTION STATUTE EXPIRATION DATES
A collection statute expiration date refers to the legal timeframe the IRS must collect a tax balance. The CSED often ends the Government’s right to further pursue tax liability, i.e. 10 years from the tax assessment date. For example, you waited until 2015 to file a return for 2013. The tax will be assessed in 2015 and the 10-year period begins to run on the same year. The expiration date is 2025.
In some cases, the CSED needs to be recalculated. However, IRS agents do not always recalculate them accurately. The National Taxpayer Advocate reports that miscalculated CSEDs are one of the most serious tax problems experienced by individual and business taxpayers.
If a CSED is miscalculated beyond the actual CSED, the mistake may result in unlawful collection activity, which violates the taxpayer’s rights.
Speak to a tax expert about the Collection Statute Expiration Date. Contact us now!
COLLECTION STATUTE EXPIRATION DATE EXPERTS
When it comes to collection statute expiration date resolution, our team can at any number of years you want to analyze. We can also provide our clients with a comprehensive report comprising of:
- Annual IRS account activities
- All IRS notices received and sent per year
- CSED extensions
- Tolling events
- Annual CSED calculations
- Total accrual, interest, penalty, and tax assessment amounts per year (they indicate how much you owe to the IRS)
All in all, Tax Defense Partners can review your tax account transcript and figure everything out for you. This way, you do not need to pay penalties, interest, and taxes that are no longer legally collectible. If you have other tax debt that has not been cleared, we can determine a tax resolution strategy for you based on the above information.
FREQUENTLY ASKED QUESTIONS ABOUT COLLECTION STATUTE EXPIRATION DATES
What happens if my CSED has not elapsed?
If the expiration date is getting close, it is recommended that you put together a plan that protects you from aggressive collection action. You may need a tax professional to negotiate a monthly payment plan with the IRS. Alternatively, you can place your account into “Currently Not Collectible”.
What happens if my CSED has lapsed?
Congratulations! All that remains is to clean up the mess that your previous tax problem has left in your life. You may need to apply for a TC 608 credit to cancel out the debt. Next, you should file a Release of Federal Tax Lien to kickstart the process of repairing your credit.
Does the IRS inform taxpayers about elapsed CSEDs?
No, the IRS is not required by law to notify taxpayers that a debt has expired. As they are also no longer allowed to chase after payment, you will simply stop hearing from them.
CHOOSE TAX DEFENSE PARTNERS FOR COLLECTION STATUTE EXPIRATION DATE SERVICES
Tax Defense Partners is one of the nation’s fastest growing tax debt negotiation and mediation companies. Since our inception, we have saved clients millions of dollars through the use of statute of limitations and a thorough understanding of CSED. You can rest assured that we can assign enrolled agents for all federal, state and U.S. territorial tax jurisdictions to work on your case.
Get a tax professional to recalculate your collection statute expiration date.
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