Statute of Limitations on Federal Taxes


B

Barry

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?
 
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W

Wayne Brasch

Barry said:
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
 
P

Paul

Barry said:
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.
 
B

Barry

Paul said:
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?

Barry
 
B

Barry

Barry said:
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.
 
P

Paul

Barry said:
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).
 
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P

Paul

Barry said:
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.
 
T

Tim

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!!!!"
 
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P

Paul A Thomas

Tim said:
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!!!!"

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.
 

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