What should I do about the IRS collection time limit?
The IRS generally has 10 years from the date a tax is assessed to collect it. When that time ends, it can no longer collect. Some things pause or extend the clock.
Each tax assessment has its own end date, called the collection statute expiration date, or CSED.
A pending payment plan request, a pending offer, and certain other events pause or extend the clock. The IRS says an offer extends your collection period.
If the time to collect ended before a levy was issued, the IRS must release that levy.
Key facts
- The assessment date for each tax year
- Any offer or plan requests and their dates
- Bankruptcy or hearing dates
- Time spent living outside the US
Options that may help
Account transcripts show assessment dates.
Clock math can be tricky with pauses.
Liens, levies and interest keep going until the date passes.
Results depend on your situation. Not every case qualifies.
Common questions
Does a payment plan request pause the clock?
Yes. The IRS says its time to collect is suspended or prolonged while a plan request is pending.
Does an offer extend the clock?
Yes. The IRS says it extends your collection period when it processes your offer.
Source: IRS: Offer in compromise
Sources
General information, not tax or legal advice. You can contact the IRS yourself for free at irs.gov.