Is there a statute of limitations on Tax Debt by dmishesq

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									Is there a statute of limitations on Tax Debt?
People often question if there will come a time when after years of collecting tax debts, the IRS can no longer claim the money you owe them. Is there such a thing as statute of limitations n IRS tax debts? Yes, there is.. The law permits the IRS to collect money from you for only 10 years. After that time, your debts are considered non-existent, and your IRS problems, resolved. Although it appears that it is a simple strategy - outwitting the IRS for 10 years and then deciding not to pay them - this is not the case. Ask anyone who has tried not to pay the IRS for any amount of time. They will surely remark that the government has grown better and better at using all means of tax collection. Ten years is quite a long time for the IRS to use every tactic and strategy available. The IRS can also place a tax lien on your credit record that will stay there until the 10-year period has elapsed. This tax lien will definitely decrease your credit score and in effect, you will not be eligible for a loan of any sort. With this, you should try your best to refrain from getting a lien as it poses a grave IRS problem. So the best solution is to actually work with the IRS so that they don't go to such extreme and damaging techniques. For all we know, 10 years is long time to wage war against the government, and the fact that certain circumstances may extend the statute of limitations period makes the situation worse. For example, coming up with the decision for a request of an Offer in Compromise (OIC) may take up to a year. During the time of the hearing, the statute of limitations is essentially frozen and resumes only after a decision was arrived at, and in the case of denial, another year is included in the prescribed period. Filing for bankruptcy also increases your statute of limitations period. Since essentially the IRS can't collect any money from you while your claim is being processed, the period is again frozen until a decision has been arrived at. This, again, increases the statute of limitations period on your tax debt. While many people may believe that the situation is bleak and none of this is good information, the fact is, this means that the IRS will not be able to run after you forever. They may be able to try to collect debts from you for a substantially long amount of time, but at least it is not forever. Fortunately, there are a number of options available to help those who are faced with an IRS problem lessen its impact. Seeking out assistance from tax attorneys and accountants is the first step in effectively dealing with this kind of issue. After all, handling the IRS is too legal a task and you will only be able to properly do this if you utilize the services of those who are knowledgeable in this area.

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