How long does the IRS have to collect a tax debt? What is the IRS statute of limitation for collecting a tax debt? These are common questions an individual or business may ask if they owe taxes to the IRS, or especially if they have owed taxes to the IRS for quite some time and are hoping the collection statute has passed.
Generally, the IRS has a ten year collection statute. There are times or actions that can cause the statute to be tolled such as the filing of bankruptcy or the filing of an offer in compromise. During bankruptcy and while the IRS is reviewing an offer in compromise, they cannot actively enforce collection of a tax debt. If or when the IRS cannot actively collect, the statute is tolled and the clock is not ticking on the amount of time the IRS to collect the taxes you owe.
If you owes taxes to the IRS, consider speaking with a Denver tax attorney at The McGuire Law Firm in regards to your options to resolve such debt, and your rights as a taxpayer. A tax attorney can help you resolve your IRS debt and often save you time, money, stress and frustration. At The McGuire Law Firm, we provide a free consultation to all potential clients and would welcome the opportunity to meet with you.