How Long Does the IRS Have to Collect Taxes From You?

By: Cassandra Ingraham
Submitted: 2007-01-17 16:17:26
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The statute of limitations on the collection of a tax liability is 10 years. (Internal Revenue Code 6502.) After ten years the debt is wiped out. (continue to read for provisional conditions)

There are a number of ways the ten-year period can be extended.

1. The ten-year period does not start until you file your tax return and IRS assesses the tax against you. So NOT filing a return and hiding for 10 years won't get your tax debt wiped out.

2. IRS can extend the ten-year period by suing you in federal court. This does not happen very often, so I am told.

3. If you file an Offer in Compromise, or traveling or living outside of U.S., or involved in a dispute with IRS, or file bankruptcy or request a Taxpayer's Assistance, sign a waiver form or request any kind of hearing; your ten-year period is extended until any of these issues are involved.

usually IRS will make every effort to collect the Tax liability before the 10-year period is up. This includes garnishment of your wages and placing a levy on your bank account.

It is strongly suggested by www.taxeswilltravel.com that you contact a Tax Professional if any of these situations apply to you.

Cassandra is a Registered Tax Professional and Instructor for Basic Tax Classes in the San Francisco Bay Area. During the balance of the year she can be found at http://www.taxeswilltravel.com providing online, tax resolutions. Ms. Ingraham provides, for her clients, Formal Introductions to Lenders for Accounts Receivable Funding (Factoring), Invoice Lines of Credit, Merchant Funding, and Small Business Loans

Article source: Expert Articles

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