Statute of Limitations on Federal Taxes

Discussion in 'US Taxes' started by Barry, Sep 4, 2005.

  1. Barry

    Barry Guest

    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?
     
    Barry, Sep 4, 2005
    #1
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  2. Barry

    Wayne Brasch Guest

    "Barry" <> wrote in message
    news:xfvSe.20$...
    > 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
     
    Wayne Brasch, Sep 4, 2005
    #2
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  3. Barry

    Paul Guest

    "Barry" <> 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
     
    Paul, Sep 4, 2005
    #3
  4. Barry

    Barry Guest

    "Paul" <> wrote in message
    news:...
    >
    > "Barry" <> 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
     
    Barry, Sep 4, 2005
    #4
  5. Barry

    Barry Guest

    "Barry" <> wrote in message
    news:yGJSe.5233$...
    > "Paul" <> wrote in message
    > news:...
    >>
    >> "Barry" <> 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.
     
    Barry, Sep 5, 2005
    #5
  6. Barry

    Paul Guest

    "Barry" <> 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
     
    Paul, Sep 5, 2005
    #6
  7. Barry

    Paul Guest

    "Barry" <> 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
     
    Paul, Sep 5, 2005
    #7
  8. Barry

    Tim Guest

    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" <> 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.
    >
    >
    >
     
    Tim, Sep 7, 2005
    #8
  9. "Tim" <> 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" <> 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
     
    Paul A Thomas, Sep 7, 2005
    #9
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