Accountant Forums


Reply
Thread Tools

Statute of Limitations on Federal Taxes

 
 
Barry
Guest
Posts: n/a
Thanked:
 
      09-04-2005, 05:04 AM
Can someone please tell me what the statute of limitations is on Federal
taxes? I believe I've been told that if the IRS does not collect taxes due
within 10 years then they are forgiven. Is that correct?


 
Reply With Quote
 
 
 
 
Wayne Brasch
Guest
Posts: n/a
Thanked:
 
      09-04-2005, 04:18 PM

"Barry" <(E-Mail Removed)> wrote in message
news:xfvSe.20$(E-Mail Removed). net...
> Can someone please tell me what the statute of limitations is on Federal
> taxes? I believe I've been told that if the IRS does not collect taxes due
> within 10 years then they are forgiven. Is that correct?
>


Not necessarily forgiven, but perhaps forgotten.

Wayne Brasch


 
Reply With Quote
 
 
 
 
Paul
Guest
Posts: n/a
Thanked:
 
      09-04-2005, 06:20 PM

"Barry" <(E-Mail Removed)> wrote
> Can someone please tell me what the statute of limitations is on Federal
> taxes? I believe I've been told that if the IRS does not collect taxes due
> within 10 years then they are forgiven. Is that correct?




Ten years from the date the returns were filed (more or less) unless some
event extended the timeline, like a pending offer-in-compromise, etc.



--
Paul A. Thomas, CPA
Athens, Georgia


 
Reply With Quote
 
Barry
Guest
Posts: n/a
Thanked:
 
      09-04-2005, 09:29 PM
"Paul" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
>
> "Barry" <(E-Mail Removed)> wrote
>> Can someone please tell me what the statute of limitations is on Federal
>> taxes? I believe I've been told that if the IRS does not collect taxes
>> due within 10 years then they are forgiven. Is that correct?

>
>
>
> Ten years from the date the returns were filed (more or less) unless some
> event extended the timeline, like a pending offer-in-compromise, etc.
>
>
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia
>


You say it's ten years from the date of filing. Can I take that to mean that
taxes due for the year 1995 will not be forgiven until approximately April
of 2006?

Barry


 
Reply With Quote
 
Barry
Guest
Posts: n/a
Thanked:
 
      09-04-2005, 11:39 PM

"Barry" <(E-Mail Removed)> wrote in message
news:yGJSe.5233$(E-Mail Removed) nk.net...
> "Paul" <(E-Mail Removed)> wrote in message
> news:(E-Mail Removed)...
>>
>> "Barry" <(E-Mail Removed)> wrote
>>> Can someone please tell me what the statute of limitations is on Federal
>>> taxes? I believe I've been told that if the IRS does not collect taxes
>>> due within 10 years then they are forgiven. Is that correct?

>>
>>
>>
>> Ten years from the date the returns were filed (more or less) unless some
>> event extended the timeline, like a pending offer-in-compromise, etc.
>>
>>
>>
>> --
>> Paul A. Thomas, CPA
>> Athens, Georgia
>>

>
> You say it's ten years from the date of filing. Can I take that to mean
> that taxes due for the year 1995 will not be forgiven until approximately
> April of 2006?
>
> Barry
>
>

I did make an offer in compromise about 4 years ago but the IRS declined it.
Will that extend the 10 year time limit in any way? I've since attempted to
have the debt discharged through bankruptcy but I've never been able to get
a straight answer as to whether or not MY taxes were dischargeable or not so
I'm hoping to wait out the 10 year clock instead.


 
Reply With Quote
 
Paul
Guest
Posts: n/a
Thanked:
 
      09-05-2005, 05:20 PM

"Barry" <(E-Mail Removed)> wrote

>> Ten years from the date the returns were filed (more or less) unless some
>> event extended the timeline, like a pending offer-in-compromise, etc.



> You say it's ten years from the date of filing. Can I take that to mean
> that taxes due for the year 1995 will not be forgiven until approximately
> April of 2006?



For the most part, yes. If the returns were filed on time (without being
extended).



--
Paul A. Thomas, CPA
Athens, Georgia


 
Reply With Quote
 
Paul
Guest
Posts: n/a
Thanked:
 
      09-05-2005, 05:23 PM

"Barry" <(E-Mail Removed)> wrote
> I did make an offer in compromise about 4 years ago but the IRS declined
> it. Will that extend the 10 year time limit in any way?



Yes, while the offer is being considered (basically the time you made the
offire till the tiime they said "no" is tacked on to the 10 year statute.
So, a couple of more months? You can always call and ask, although it may
not be wise to do so if they aren't actively trying to collect.



--
Paul A. Thomas, CPA
Athens, Georgia


 
Reply With Quote
 
Tim
Guest
Posts: n/a
Thanked:
 
      09-07-2005, 04:07 PM
Someone might check me on this, but I believe it is ten years after the
taxes were required to be assessed. The government has 3 years after
returns WERE filed or after they were required to be filed to assess.
If I am wrong, all I can say is, "EXCUUUUSE MEEEE!!!!"

Paul wrote:
> "Barry" <(E-Mail Removed)> wrote
>
>>Can someone please tell me what the statute of limitations is on Federal
>>taxes? I believe I've been told that if the IRS does not collect taxes due
>>within 10 years then they are forgiven. Is that correct?

>
>
>
>
> Ten years from the date the returns were filed (more or less) unless some
> event extended the timeline, like a pending offer-in-compromise, etc.
>
>
>


 
Reply With Quote
 
Paul A Thomas
Guest
Posts: n/a
Thanked:
 
      09-07-2005, 05:50 PM

"Tim" <(E-Mail Removed)> wrote
> Someone might check me on this, but I believe it is ten years after the
> taxes were required to be assessed. The government has 3 years after
> returns WERE filed or after they were required to be filed to assess. If I
> am wrong, all I can say is, "EXCUUUUSE MEEEE!!!!"
>
> Paul wrote:
>> "Barry" <(E-Mail Removed)> wrote
>>
>>>Can someone please tell me what the statute of limitations is on Federal
>>>taxes? I believe I've been told that if the IRS does not collect taxes
>>>due within 10 years then they are forgiven. Is that correct?

>>
>>
>>
>>
>> Ten years from the date the returns were filed (more or less) unless some
>> event extended the timeline, like a pending offer-in-compromise, etc.



While true, the IRS does not process a return and then wait three years to
assess the tax. So, for timely filed returns, they would have been timely
assessed, and the statute to collect begins to run from that time forward.
There would be exceptions for any processing delays, where they requested
missing forms or other information to assist in processing the return, but
processing issues are generally settled in a very short time span (a couple
of months tops).

If there is a balance due on the return, you generally can go from the first
notice date as a clue to when the return was processed and the tax assessed.


--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net


 
Reply With Quote
 
 
 
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Does the federal tax statute of limitations apply to the keeping of depreciation records? SF Man Tax 18 10-14-2011 02:11 PM
Where are all the 'tax' newsgroups: eurozone.taxes, us-canada.taxes, australia-nz-fiji.taxes, carribean.taxes, europe.taxes, asia.taxes, rest-of-world.taxes? Max Power US Taxes 0 03-22-2007 02:41 AM
Statute of Limitations.. 10-S-NE-1 Tax 4 01-03-2004 06:13 AM
Basis limitations, statute of limitations, etc. Gene Prescott Tax 1 10-18-2003 03:08 AM
Statute of Limitations for IRS Tax Collection RickJ Tax 0 08-05-2003 09:37 PM


All times are GMT. The time now is 11:55 PM.
Posts in this forum do not constitute the advice of AccountantForums.com or its members. Financial advice should always be taken from qualified advisors before committing to a financial decision.