The Statute Of Limitations on Tax CollectionIs...
Ten years.
After ten years, the IRS can't collect a dime.
The ten-year assessment period starts on the day the IRS receives your return or on April 15, whichever one is later.
If IRS adjust your taxes, the ten year countdown on the additional taxes owed starts from the date of the adjustment.
Now as the tax code reads:If a tax payer is out of the country for six months at a time; then IRS can and has gone after taxes owed, even after the ten year period.
The heart breaking news is, when the ten years is almost up, the IRS computer will notify an IRS human that a"tax payer" is about to slip through the cracks.
This is when you will hear from IRS in the form of a letter, certified mail or maybe even a personal visit.
When IRS catches up with you, they may encourage you to sign an Installment Agreement.
This is when you find your trusted yellow page book and locate a Tax Professional.
This is NOT a time to go signing papers with IRS; without understanding totally what you are signing.
And ifIRS should say the words: Form 900, Tax Collection Waiver, it would be best for you to run, not walk, to your nearestEnrolled Agent.
Signing such a Form would extend the period of time IRS can collect the debt.
(An Enrolled Agent is authorized to practice before IRS and can speakto IRS on your behalf) If you cannot afford a Tax Attorney or an Enrolled Agent you can sign up for "Tutoring"on how to complete your own Offer in Compromise.
This is tricky, because IRS wants Tax Professionals who handle Offer in Compromises, to be of a certain Professional level.
(This means that a regular Tax Preparer or a Tax Account cannot sign your OIC as the Paid Preparer)However, if you own a real estate or have assets, Itwould be best to hire an Enrolled Agent or a Tax Attorney.
Usually, tax liabilities double over a period of time because of penalties and interest, which is compounded daily.
So procrastination can be deadly to your financial future.
If you are experiencing fear about contacting IRS,you are not alone.
However, your fear is costing you money, so get help, ASAP.
After ten years, the IRS can't collect a dime.
The ten-year assessment period starts on the day the IRS receives your return or on April 15, whichever one is later.
If IRS adjust your taxes, the ten year countdown on the additional taxes owed starts from the date of the adjustment.
Now as the tax code reads:If a tax payer is out of the country for six months at a time; then IRS can and has gone after taxes owed, even after the ten year period.
The heart breaking news is, when the ten years is almost up, the IRS computer will notify an IRS human that a"tax payer" is about to slip through the cracks.
This is when you will hear from IRS in the form of a letter, certified mail or maybe even a personal visit.
When IRS catches up with you, they may encourage you to sign an Installment Agreement.
This is when you find your trusted yellow page book and locate a Tax Professional.
This is NOT a time to go signing papers with IRS; without understanding totally what you are signing.
And ifIRS should say the words: Form 900, Tax Collection Waiver, it would be best for you to run, not walk, to your nearestEnrolled Agent.
Signing such a Form would extend the period of time IRS can collect the debt.
(An Enrolled Agent is authorized to practice before IRS and can speakto IRS on your behalf) If you cannot afford a Tax Attorney or an Enrolled Agent you can sign up for "Tutoring"on how to complete your own Offer in Compromise.
This is tricky, because IRS wants Tax Professionals who handle Offer in Compromises, to be of a certain Professional level.
(This means that a regular Tax Preparer or a Tax Account cannot sign your OIC as the Paid Preparer)However, if you own a real estate or have assets, Itwould be best to hire an Enrolled Agent or a Tax Attorney.
Usually, tax liabilities double over a period of time because of penalties and interest, which is compounded daily.
So procrastination can be deadly to your financial future.
If you are experiencing fear about contacting IRS,you are not alone.
However, your fear is costing you money, so get help, ASAP.
Source...