If you owe tax debt, you might be wondering if you will be indebted to them forever. Thankfully, the IRS does have a specific amount of time to collect taxes, and once they’ve reached the time limit, they won’t be able to collect the tax debt anymore. Our Tampa tax debt attorneys explain how long the IRS has to collect taxes.
How Long Does the IRS Have to Collect Taxes?
The statute of limitations that the IRS has to collect a tax debt is typically ten years. This means that the IRS can attempt to collect your unpaid taxes for up to ten years from the date they were assessed. Once the ten years are up, the IRS can no longer attempt to collect.
In most cases, when the state expiration date is near, the IRS will act aggressively to get you to pay as much of your taxes as possible.
Is the 10 Year Period Set in Stone?
No, the ten-year limitation period can be extended if you voluntarily agree to do so. For example, if you enter into an installment agreement with the IRS, which allows you to pay only a fraction of the amount owed, you would likely sign a form waiving the ten-year limitation period. However, the extension can be no longer than six years.
Avoiding Payments Until the 10 Year Period
Although it might be tempting to wait for the ten years to expire and avoid paying taxes, it’s not as easy as it sounds. During the ten years that the IRS has to collect a debt, they will likely use various collection tools to obtain the tax debt owed. For example, depending on the amount owed, they can garnish your wages, add a levy and seize your home, etc. Failing to come to an agreement with the IRS can have negative repercussions.