The IRS has ten (10) years from the date of a tax assessment to collect a debt from the taxpayer.
The date the collection statute expires is called the Collection Statute Expiration Date or CSED.
When this date passes, the IRS is barred from attempting to collect your tax debt unless you waive the enforcement of the statute.
When Does the Collection Statute Start to Run?
The statute starts on the day an IRS assessment is made.
Generally, the dates of assessment are as follows:
- Filed tax returns – The date you mailed the tax return plus six weeks.
- Audit Adjustments (agreed) – The date you signed the auditor’s report plus three weeks.
- Audit Adjustments (unagreed) – The date the appeals process and the tax court process (if any) is completed and the tax court judge has issued his or her ruling.
What Will Cause the Collection Statute to be Extended?
The Collection Statute can be extended (tolled) by one or more of the following acts or situations:
- The filing of a bankruptcy petition - The statute is extended for duration of the bankruptcy proceedings.
- The filing of an Offer in Compromise - The statute is extended for duration of the Offer or one year, whichever is greater.
- The filing of requests for relief – The statute is extended when a taxpayer files for a Collection Due Process hearing, Innocent Spouse Relief and any other form of relief that requires the IRS to suspend collection enforcement while it reviews the validity of the underlying assessment.
- The signing of a waiver extending the statute - The statute is extended to date indicated in signed waiver. Never sign a statute extension without first consulting your tax advisor.
- The taxpayer is out of IRS jurisdiction – The statute is extended for duration taxpayer was out of IRS jurisdiction.
Our Advice to Taxpayers
In formulating a strategy for dealing with the IRS and in evaluating your options, it is critical that we accurately determine the date the collection statute expires.
The IRS has incorrectly calculated the CSED on many prior occasions. Consequently, you should never rely solely on an IRS agent’s statement of the CSED.
If you owe back taxes for several years, consult with an experienced tax professional before providing any financial information to the IRS collection office.
As you might expect, the IRS doesn’t like it when the collection statute expires because that means it won’t get paid.
This is why the IRS intensifies enforced collection actions as the CSED approaches.
And some IRS agents will even try to trick the taxpayer into signing a statute of limitations waiver.
This is why we strongly recommend that taxpayers do not represent themselves before the IRS collection division.
17 responses so far ↓
1 IRS Doesn’t Have Forever to Audit Your Return // Oct 8, 2009 at 10:12 pm
[...] The 10 Year Statute of Limitation on Collection of an IRS Debt Bookmark & Share: [...]
2 IRS Lien Procedure // Nov 11, 2009 at 6:00 pm
[...] [...]
3 Tax Lawyer // Nov 26, 2009 at 10:33 pm
This is a nice reminder for folks. Taxpayers don’t realize that there is a 10 year statute of limitations on tax debt. But most people will have there bank accounts levied and tax liens filed long before this.
4 Queen Creek CPA // Jan 24, 2010 at 2:58 pm
This statute is often overlooked…unfortunately most folks will not be able to wait it out as the IRS will most likely levy prior to this. However, they may be able to get non-collectible status that will help.
5 Win // Mar 13, 2010 at 11:25 pm
The Wall Street Journal said this week that the 2008 Farm Bill extends the Fed’s the right to collect past 10 years. Is this true? For infinity?
6 Peter // Mar 14, 2010 at 11:16 am
Win,
Please provide the link and I will check it out for you.
7 Lee Brown // Apr 4, 2010 at 3:21 pm
Can you clarify: Is California exempt from the 10 year statute to collect? There are taxes owing from 1992 through 2001. No returns were filed; the taxes were assessed and interest started accruing from 4/15 of the following year of each year. Any other info than what has been posted would appreciated. On 3/30/2010 the bank accounts were levied. Also, what does CSED mean?? Thank you in advance for any clarification. Lee Brown
8 Peter // Apr 5, 2010 at 8:32 pm
Lee,
I am unaware of any exemption for Californians.
CSED stands for “Collection Statute Expiration Date.”
9 Accounting Leads // Jun 13, 2010 at 12:49 am
Looks like if you can stall the IRS long enough and avoid any liens, you may be able to let the statute expire. Too bad not many people are aware of this. At the end of the day, if you owe the tax then you should pay it.
10 Peter // Jun 13, 2010 at 9:45 am
Accounting Leads,
Be careful about this strategy. As tax advisors we are not permitted to pursue a course of action that is designed merely to delay the IRS’s collection of the debt.
11 The Substitute for Return: The IRS’s Secret Enforcement Weapon // Aug 28, 2010 at 9:58 am
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12 Help // Dec 21, 2010 at 3:05 pm
Just found out old taxes due from 1999, filed April 14th, 2000. Lien for these Marxh 2004.
Filed bankruptcy in 2001.
Is it the 10 years limitation from April 14th, 2000 plus the 4 months during the bankruptcy so that 10 years and 4 months from April 14th 2000 the debt is now uncollectible?
OR
It is from the date of the lien in 2004?
OR
something else?
I would appreciate a response.
Thank you all.
This old tax debt was a total surprise to me when the lien came up during a home refinance.
13 Peter // Dec 22, 2010 at 1:16 am
Help,
Collection statute expiration dates (CSED) can be difficult to calculate. The only way to get the exact CSED is to call the IRS, which I am sure you don’t want to do. Did you ever file an offer in compromise? Have you been out of the country for any significant period of time? These things, also, can extend the CSED.
Good luck.
14 IRS Liens and How to Get Rid of Them | The Pappas Group // Jul 29, 2011 at 5:24 pm
[...] [...]
15 Cricket B // Oct 30, 2011 at 7:20 pm
We just found out that I have a 15 year old tax debt that I never knew about. Federal & State income taxes. It was found only on my credit report, found while trying to purchase new home, it is not on my huabands report. Is there a statute of limitations on something this old? I am in southern california, & was 15 years ago.
Thank You.
16 Peter // Oct 31, 2011 at 7:55 am
Cricket B,
State statutes are different than federal statutes. I would need a lot more information before I can advise you on this matter. I suggest you call me or hire a local tax attorney to assist you.
Good luck.
17 Reechy // Oct 31, 2011 at 6:51 pm
Hi,
I hadn’t filed taxes for a while and now I’ve done them all from 2005-2010. I owe for for each yr and IRS for 2005-2008. My W-4.
I feel behind because I did too many exemptions and when it was time to pay for 2004 I was already in a bin and just delayed it for yrs.
When I got them done by a so-called CPA she didn’t bring any of this up to me. She tried pressuring me into a OIC but I couldnt pay that full amount. Ive set up a pay plan for IRS and tried for State but they want more a month than I can pay. So I just started sending anything in with hopes that they won’t do anything harsh. They did it anyway and put a lien on me.
I just found out about CSED, can someone tell me how do I go about it with this in mind? Just a reminder, I filed 05-2010 in Jan 2011. Does the CSED start this yr or the tax yr?
Any advice is most appreciated…thank you!
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