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The Statute of Limitations' Limitations

Updated: Nov 3

The IRS is a powerful agency and it does not take kindly to those who owe taxes. The government wants its money, and the faster you can pay them what you owe then the better off you will be. Thankfully, the Statute of Limitations for tax debts is a powerful defense. Don't think you're safe from tax debt right away! The IRS still has 10 years to collect from you and they will implement the most extreme collection actions in order to get their payment from you. In some cases even, the Statute of Limitations on your tax debt may be extended and you will have to wait longer in order to be safe from your tax liabilities.



Collection Suspension


A common conception where Statute of Limitations may be prolonged is when collection during the 10 year period has be suspended for any reason. Any suspensions do no go towards the Statute of Limitations. A way to put it is when your collections are suspended, so are the Statute of Limitations, and they will resume simultaneously.


Suspension might occur for a variety of causes. These are some examples:


  • If you file for bankruptcy and the court orders an automatic stay, the IRS will not be able to collect from you.

  • The IRS is reviewing your request for an installment agreement, Offer In Compromise, or Innocent Spouse Relief, or you have filed an appeal of an IRS installment agreement or offer in compromise rejection.

  • Any time of more than six months spent living outside the United States.

  • The IRS is constitutionally prohibited from collecting from you.

Aside from suspension, the Statute of Limitations can be extended for more than 10 years in the following circumstances:


  • If you willingly prolong it.

  • If you engage into a payment plan with the IRS. In this scenario, they may ask you to sign a document waiving the ten-year statute of limitations.

  • If a state or federal court has control or custody of your assets.

  • If there is an invalid lien in place.

Not Safe


Just to reiterate, no taxpayer is completely safe from the IRS. Just because the Statute of Limitations is in place does not imply that you can avoid the IRS. They will continue to impose collection attempts and may even take your property and garnish your wages in the process to fulfill your balance due. It's understandable that many individuals and families simply cannot afford to pay off undeniably high amounts of back taxes. Luckily there's still hope. There's a relief program that consolidates many major relief programs into a one-size-fits-all assistance program; The IRS Fresh Start Program. Our clients are referred to our Fresh Start Program in order to avoid bankruptcy, acquire debt relief, and settle their debts in a quick manner. Let us give you a helping hand today!


See if you qualify for the Fresh Start Program today!

Resolve your tax debt before the IRS surprises you with late fees and penalties!

  1. Answer a few questions

  2. Qualify and be presented with a resolution - click here

  3. Enroll in Fresh Start

You can click here to be connected with a verified partner of IRS Fresh Start Initiative

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