Collection Statute Expiriation Date
1. If my collection expiration date for 2007 taxes is a year away and I have no assets except for a small amount in a retirement account (that has a loan against it for school), what should I do?=====> The collection statute expiration ends the government's right to pursue collection of a liability; the IRS can attempt to collect your unpaid taxes for up to 10 years from the date they were assessed. Subject to some important exceptions, once the 10 years are up, the IRS has to stop its collection efforts. Every year, the statute of limitations expires for thousands of taxpayers who owe the IRS money. Prior to its amendment in 1998 , tax law authorized the Secretary to accept waivers extending the statute of limitations on collection after assessment prior to the expiration of the collection period. Waivers of the collection period are secured only when the extension is agreed to at the same time a partial payment installment agreement is made, when appropriate, or prior to a release of levy that occurs after the expiration of the statutory 10-year period for collection.So since your CSED is near, the IRS may act aggressively to get you to pay as much as possible before the deadline or agree to extend it;
From what I've read an installment plan can only go the CSED, and I can't come close to repaying the amount by then. There is the option extending the CSED with the use of a Partial Installment Plan, where they take a reduced amount over up to 2 years.
It seems odd they'd rather take a reduced amount then the full amount over a longer period.
Someone recommended just letting the CSED come and go and not pay anything, but I'm afraid they'll take 100% of my paycheck for the next year, and I'd really like to pay it off.---> As you might expect, the IRS doesn?t like it when the collection statute expires because that means it won?t get paid This is why the IRS intensifies enforced collection actions as the CSED approaches.And some IRS agents will even try to trick the taxpayer into signing a statute of limitations waiver This is why experts strongly recommend that taxpayers do not represent themselves before the IRS collection division. Since you owe back taxes for several years, you need to consult with Taxpayer Advocate Service. https://taxpayeradvocate.irs.gov/get...328.1462364085
before providing any financial information to the IRS collection office.again first and foremost, you need to understand that the IRS is not in the business of collecting taxes, to simply allow the 10 year period to expire. Once that time frame does approach, the IRS will usually force you to sign a ?Waiver of the 10 year Statute?, in return for not going after your bank account, or paycheck. IRS debts can only legally be collected for 10 years, but there are many events that may stop that 10 year clock from running. the IRS is not required to notify you once the debt has expired.This is known as "tolling the statute of limitations". Events that stop or "toll" the statute of limitations from running include:Filing an Offer in Compromise -- the statute of limitations does not run the entire time your Offer is under review, including any Appeals that you exercisel Filing Certain Appeals -- the statute of limitations does not run the entire time an IRS Appeal is pending, in most cases. If your Statute of Limitations has not expired, but it is getting close, the best thing to do is to get a plan in place with the IRS to ensure you're protected from aggressive collection action without doing anything that will stop the clock from running.The most common options in this circumstance are either a low monthly payment plan or negotiating for your account to be placed into currently not collectible status.
We generally recommend against attempting an Offer in Compromise if your statute of limitations is close to expiring soon because the clock stops throughout the entire Offer process.