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How long does IRS have to Collect Back Taxes?

How long does IRS have to Collect Back Taxes?

Getting notices from the IRS when you owe can be a tiring experience. You are expected to pay your tax and file them when due. When you fail to this at the right time, the IRS will not be lenient or give you any preferential treatment. They will begin to notify you about your debt and ask you to pay up. The best option is always to find ways to pay your taxes or discuss payment plans with the IRS.

However, if you are getting notices from the IRS and you are wondering if they will ever go away, the answer is yes. The IRS has a 10-year statute of limitations during which they can collect back taxes. This means that the maximum period of time that the IRS can legally collect back taxes is 10 years from the date which they are owed.

Many taxpayers make the mistake of just knowing the period of time for the statute of limitations but not when it starts. It is very important to know when this collection period of 10 years starts counting.

The 10 years period of time starts when the tax return is filed and the IRS posts it on their database. It does not start the day the debt is created. The IRS posts it on their computer 6 weeks after the tax return is filed. Thus if the tax return is filed by April 15, then the IRS will post it by June 1st.

Take note that certain things can extend your 10-year statute of limitations. Some of them include filing for bankruptcy and making appeals.

When you owe the IRS, expect to start getting contacted by them. You must be careful, however, because there are many scammers who can call and claim to be the IRS and they may even threaten you.

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