How long does the Internal Revenue Service (IRS) have to collect my taxes due?
The IRS can attempt to collect your taxes up to 10 years from the date they were assessed. However, there are ways this time period can be suspended. For example, by law, the time to collect may be suspended while:
· The IRS considers your request for an Installment Agreement or Offer in Compromise. If your request is rejected, they will suspend collection for another 30 days, and during any period the Appeals Office is considering your appeal request.
· You live outside the U.S. continuously for at least 6 months. Collection is suspended while you’re outside the U.S.
· The tax periods the IRS is collecting on are included in a bankruptcy with an automatic stay. They will suspend collection for the time period they can’t collect because of the automatic stay, plus 6 months.
· You request a Collection Due Process hearing. Collection will be suspended from the date of your request until a Notice of Determination is issued or the Tax Court’s decision is final.
· The IRS is considering your request for Innocent Spouse Relief. Collection will be suspended from the date of your request until 90 days after a Notice of Determination is issued, or if you file a timely petition to the Tax Court, until 60 days after the Tax Court’s final decision. If you appeal the Tax Court’s decision to a U.S. Court of Appeals, the collection period will begin 60 days after the appeal is filed, unless a bond is posted.
Next week – Information on collection cases assigned to a Private Collection Agency.
(IRS Publication 594 and IRS.gov) (TTT 10/08/19)