Tax Debt Limitations
September 14, 2016
If you ever find yourself in tax debt it’s important to be informed about the tax limitations placed upon the IRS. The IRS’s collection power is bound by limitations. Generally, the statute of limitations is an expiration date for legal claims. It clarifies when a claim must be brought.
Here are five things to keep in mind regarding tax debt and the IRS.
1. The IRS is limited to 10 years to collect back taxes.
2. The IRS 10 year window to collect starts when the IRS originally determines that you owe taxes. This usually happens when you filed your tax return, or when the result of an IRS audit becomes final.
3. Unknowingly, you can give the IRS more time to collect. This can be done many different ways, but the IRS may add to your collection time frame if this happens.
4. IRS tax liens become legally unenforceable when the collection window closes. After the collection window closes the statute of limitation expires. The IRS will no longer have a valid lien on your property, including your house.
5. After the IRS can no longer collect from you, they will make an internal adjustment to their books and credit your account for the amount of unpaid taxes, interest, and penalties
It is important to find out the official period of time that is left on your statute. To do this you will need to pull an IRS transcript. Often times, people choose to employ the help of an attorney to do this. George R Belche can help you understand all of your tax debt questions and concerns. Contact our office to get the process started.
George R. Belche, Attorney at Law
Lawrenceville, GA 30046