Collection Statute Expiration Date (CSED)


Generally the IRS has ten years from the date tax is assessed to collect the unpaid liability. Once a statutory expiration date is reached, the IRS must then abate the tax and release any liens filed against the taxpayer's property. This action is rarely automatic. Frequently the IRS will continue collection activity after a statute has expired, either out of administrative backlog or a perception of taxpayer ignorance. An important taxpayer “tip” in handling any outstanding tax liability that spans multiple tax years, is to designate any voluntary payments to the most recent assessments. The reason being that these assessments have the longest statutory time frame subject to collection activity. Earlier assessments have shorter statutory time periods. If a taxpayer does not make a designation of a voluntary payment, the IRS will always apply the payment to the tax period with the shortest time remaining under collection statutes. This is in the best interest of the government not the taxpayer. Frequently the IRS will apply voluntary payments this way out of default regardless of any taxpayer designation. It’s important to document any designation clearly on the payment.

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It's a fairly well kept secret that the IRS does not have the rest of your life to collect tax liabilities that you may owe. Most taxpayers with tax problems think that the problem will hound them until the day they die. I'm here to tell you that that is untrue. You see the law says that they have 10 years from the date of the assessment to collect the tax. Now there are lots of exceptions and events that can stop or "toll" the running of the Collection Statute Expiration Date (CSED). Learn more about these time limitations in the video below.

More on IRS Collection Statute of Limitations – What's That?


Do you owe back taxes? Are you afraid to go to the mailbox for fear of receiving the dreaded tax bill? If you do owe back taxes, and your bill is accruing both penalties and interest, you have IRS Problems. To help alleviate you and your family's financial and emotional burdens, it is important to seek help from a tax professional.

More on IRS Debt not a lifetime sentence – Statute of Limitations on Collections


The truth is there is a time limit. It�s called the Collection Statute Expiration Date or CSED. In short, the IRS only ten years from the date of assessment of the tax to collect it. Does this mean all you have to do is ignore them for ten years? Not hardly. Learn more about the Collection Statute Expiration Date and how it might be the IRS Tax help that you�ve been waiting to end your IRS Problem for good! Click on the video below.

More on Is there a time limit for the IRS to collect what I owe or will this just go on forever?