A lot of people don’t know that the IRS only has 10 years to collect a tax once it’s assessed. It’s called the Collection Statute Expiration Date (CSED). NOTE: this is the time the liability becomes legally due… NOT the tax year it relates to. So if you filed late, the ten years doesn’t start until the IRS assesses the tax. Similar timeframes apply once you get a bill related to an audit. In any case, the take away here is that a lot of people don’t know that their liability has an end in sight!
How do you know when your Tax Statute expires? You can call the IRS, but we don’t recommend it. If you call a collection representative at the IRS and ask them when the tax liability will expire, we can pretty much guarantee that they are going to ask you where you bank and where you work. They are not asking this question to send you Christmas cards!
The best way to obtain this information is through the disclosure office of the IRS via a Freedom of Information Act (FOIA) request. By law, the Disclosure Office can’t tell any other Department of the IRS that you requested the information. We do this for people all the time. Sometimes it’s great to know that there is light at the end of the tunnel!
Give Advanced Tax Solutions a call today, 303-753-6040, if this seems like something that may benefit you!