|
  |
|
|
Is there a statute of limitations on Tax Debt?
By Darrin Mish of Law Offices of Darrin Mish
People often wonder if there will come a time when after a period of collecting tax debts, the IRS can no longer claim the amount you owe them. Is there such a thing as statute of limitations n IRS tax debts? The simple response is YES. The law states that the IRS can only go after you in a period of 10 years. After that, your debts are immediately erased, and so will your IRS problem. Although this strategy seems plainly simple, that is outlasting the IRS for 10 years just by not paying them, it is not. Ask anyone who has tried not to pay the IRS for any amount of time. They will agree that the government is rather excellent at using any means necessary to collect on a debt. During those 10 years, the IRS will surely use every tactic and method available to get their money. The IRS can also place a tax lien on your credit record that will remain there until the 10-year period has expired. This tax lien on your credit score will effectively reduce the latter to a point that you will be unable to obtain any sort of loan no matter what you are trying to purchase. You want to avoid a tax lien at any cost as it is a substantial IRS problem. The best recourse then involves you working with the IRS so they will not resort to such severe and rigorous measures. The 10-year period in itself is already a very long time and on top of this, certain actions may extend the statute of limitations period. For example, applying for an Offer in Compromise, or an OIC, takes about a year to be processed for approval or denial. In essence, your tax debt is essentially frozen at the time of the proceedings. If, unfortunately, your OIC is denied, the 10-year period resumes from the point when the decision was arrived at. As a result, this burdens you with another full year, on top of the prescribed 10-year period. Another action that affects your statute of limitations period is filing for bankruptcy. This happens because until a decision on your bankruptcy claim is reached, the IRS can't collect money from you and your 10-year period is frozen. This, again, increases the statute of limitations period on your tax debt. Many would consider the information on statute of limitations as bad news. But if you examine it from another angle, the fact remains that although the IRS can run after you for unpaid taxes for a very long time, they can't do this forever. The fact that certain measures are available to reduce the severity of any IRS problem also makes situations lighter. Again, the need to seek for professional assistance on this matter should not be underestimated. After all, dealing with the IRS is one task that requires the help of those who are experts on the field of taxation. |
|
 |
|
PLEASE VISIT THE CONTRIBUTOR'S WEBSITE
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "Is there a statute of limitations on Tax Debt?" has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
