IRS 10 Year Statute to Collect

This taxpayer solution is, also, often overlooked. If the IRS has not collected from you within 10 Years after you filed your tax return, then the 10 Year Statue to Collect has run. In other words, you no longer owe the balance for the year the statue has run.

Do not expect the IRS to send you a letter of congratulations that you have run the statute of limitations and no longer owe the IRS!

When there appears to be several unknowns with the IRS (IRS collection statute dates, missing tax returns, outstanding balances, what is the IRS planning to do, etc.),  we believe the 1st step is to engage our firm to scope your account with the IRS.

After an assessment has been made, the IRS has 10 years to collect the tax by levy or by a court proceeding. Code Section 6502(a). The ten-year period of limitations on collections is computed from the date of assessment. The date of assessment is the date the appropriate IRS official signs the assessment list. The assessment date itself is excluded from the computation. The date on which a levy on property or rights to property is considered made for this purpose is the date on which the notice of seizure discussed in Section 613.7 is given. Code Section 6502(b).

Upon the completion of Don Fitch Accountancy’s Scope, the below findings will be written and discussed relating to the overall findings. The engagement includes the following without calling any IRS attention to the case (not all inclusive):

  • IRS Statute of Limitation dates and/or Assessment dates for each and every tax year (if any).
  • IRS balances due by year and amount (if any).
  • Tax returns unfiled for any and all tax years (if any).
  • IRS Liens filed for each and every tax year (if any).
  • IRS income information (SUPOL and/or IRS EARP, etc.) information is requested if taxpayer has outstanding tax returns.
  • Reconciling IRS tax returns on file to Taxpayer provided tax returns.
  • Determining what tax returns have been filed by the IRS for the Taxpayer (if any).  Tax returns filed by the IRS are generally referred to as an SFR’d (substitute for return) return.  The IRS may file a tax return for a taxpayer when there is reported income and a tax return is required but not filed.
  • IRS account status is generally within one of the following (not all inclusive):

      1) IRS ACS Collections (ACS),
      2) IRS Offer in Compromise (OIC),
      3) IRS Revenue Officer (RO),
      4) IRS Taxpayers Advocate Office (TAO)
      5) IRS Installment agreement,
      6) IRS Uncollectible Status (53 Status),
      7) Bankruptcy,
      8) All Clear Status All returns filed and paid.

  • Determining what types of IRS enforced collection activity is present (if any). IRS Enforced collection activity includes (not all inclusive):
          1) IRS Bank levies,
          2) IRS Wage Levy’s (Wage Garnishments),
          3) IRS Vendor Levy’s, and
          4) IRS Seizures.


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