COLLECTION STATUTE EXPIRATION DATE
COLLECTION STATUTE EXPIRATION DATE
The collection statute expiration date (CSED) is a critical concept in the world of taxes. In this comprehensive guide, we’ll explore what the CSED is and everything you need to know about it. At Lifeback Tax Relief. We’re here to provide you with essential information and support to help you navigate this vital aspect if you owe back taxes.
What Is The Collection Statute Expiration Date
The CSED, also known as the tax liability statute of limitations, represents the time frame during which the IRS can legally collect unpaid taxes from a taxpayer. Once the CSED expires, the IRS can no longer pursue collection efforts for that specific tax liability.
Everything You Need To Know About CSED
Understanding the CSED is crucial.
- CSED calculation: The CSED is typically ten years from the date of the last assessment. It may vary depending on specific circumstances.
- Pausing the CSED: Pause certain actions such as filing for bankruptcy or requesting a collection due process(CDP) hearing can temporarily pause the CSED clock.
- IRS notifications: The IRS sends notices to taxpayers regarding the CSED, allowing you to track the expiration date.
Circumstances That Can Extend The Statute Of Limitations On Unpaid Tax
The IRS recognizes the fact that paying taxes can be challenging for most people, hence it offers various tax relief resolutions. If you have an ongoing tax resolution the IRS can extend or temporarily pause the CSED. These include;
- Bankruptcy: The CSED is suspended during an active bankruptcy proceeding.
- Offer In Compromise: While your OIC is under review, the CSED clock is paused.
- Innocent Spouse Relief: The CSED can be extended if you’re seeking innocent spouse relief.
- Military Service: Serving in a combat zone can extend the CSED tax litigation. Engaging in tax litigation halts the CSED until the case is resolved.
- Pending Installment Agreement: If you have a pending installment agreement, it can also extend your CSED date.
Additionally, if you request a Collection Due Process (CDP) hearing, the CSED clock will be temporarily paused during the review process. Furthermore, if you decide to initiate a tax court case, the CSED will be extended until the case is fully resolved. However, it’s important to note that entering into an installment agreement with the IRS will keep the CSED clock running. Once the activity resumes on the paused CSED, the CSED will be extended out by the duration of the paused period.
Our team of experts will help in analyzing your financial situation and see Whether or not you can request an extension. Making it easier for you to deal with tax tension.
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How Lifeback Tax Relief Can Help
Navigating the complexities of the CSED and back taxes can be challenging. At Lifeback Tax Relief we have a team of experienced professionals who can assist you by assessing your CSED, evaluating your specific circumstances, and determining the status of your CSED and its implications. We also negotiate with the IRS to find solutions that work in your favor such as an OIC, installment agreements, or other debt resolutions. Our goal is to ensure that you remain compliant with IRS requirements, providing you with peace of mind on your journey toward financial relief.
The CSED, also known as the back tax statute of limitations, represents the time frame during which the IRS can legally collect unpaid taxes from a taxpayer. Once the case expires the IRS can no longer pursue collection efforts for that specific tax liability.