Statute of Limitations on IRS Collections 

 September 27, 2016

By  LMW Attorneys

Federal tax season typically ends on April 15th each year. This year, 2016, Emancipation Day moves the date to April 18th. Do not forget to file your federal income tax return. The federal government, specifically the Internal Revenue Service, may come looking for you, if not. Do you know the length of time, or the statute of limitations, the IRS has to collect?

About Statute of Limitations

Statutes of limitations place a restriction on the amount of time that can pass between a crime (in this case tax evasion) being committed and a person being charged with that crime. Once the allotted time has passed, charges cannot be brought against the person accused of committing the crime. Generally, the time limit starts on the date that an alleged crime was committed, not the date that the crime was first discovered or investigated. The window the IRS has to collect back taxes begins when the agency originally determines the missing tax return, or when IRS audit reports become final.

Statute of Limitations on IRS Collections

Internal Revenue Service 5.1.19 Collection Statute states:

  • Internal Revenue Code section 6502 says the statute of limitations on IRS collections is ten years. By law, the agency cannot continue collection activities against the defendant after the ten year mark.
  • Tax liens become unenforceable after the statute of limitations on IRS collections expires.
  • Any offer of compromise, bankruptcy, innocent spouse request or collection due process appeal filed in court will extend the statute of limitations the IRS has to collect.
  • Once the statute of limitations is over, the IRS should change their system information to read “Time to Collect Expired.”
  • An IRS installment agreement will not indebt you to the agency forever. The time period ends ten years after the IRS liability began.

Laporte, Mulligan & Werner-Watkins Can Help With Your Legal Needs

IRS collections offenses and other white collar crimes often involve elaborate financial matters and a large amount of documentation, which takes a skilled and organized team to defend. At Laporte, Mulligan & Werner-Watkins, we are committed to helping you build the best defense against your charges. Contact us today for your free consultation or call us at: (727) 478-4125.