IRS - Statute of Limitations on IRS Tax Debts

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					IRS - Statute of Limitations on IRS Tax Debts
There is a statute of limitation on tax debts. According to the law the
amount of money that you owe to the IRS can be collected only within a
period of 10 years from the original date of the assessment. Once the
period is over, the tax debts will be removed automatically as a result
of which you will become free from your IRS problem. Some people think
that they can save money by not paying IRS for a certain period in these
10 years. But that is not true. IRS has got enough powers so it will use
the necessary measures to collect the payment from you. They know how to
collect money from a person. In certain cases they also place a tax lien
on the person's assets and credit. This lien will remain for 10 years.
You won't be able to take any loan due to the presence of tax lien. So,
the debtor will try to make the payment as early as possible to release
the lien.
You can give a request to the IRS to remove the tax lien. The request is
given by using the 'Offer in Compromise' (OIC) feature of the IRS. But it
takes about one year to arrive at a decision for the request. Also, it is
advised to not use this method as a stalling tactic because the IRS can
prosecute individuals that do this. So, it would be better if you work
closely with the IRS so that such harsh measures by IRS can be avoided.
You cannot be sure that your OIC application will be accepted. If IRS
denies it then the statute of limitations period continues. So, now the
total period becomes approximately 11 years.
Statute of limitations period will be increased if you file a bankruptcy.
IRS cannot obtain any information of the debtor until a decision is made
on the request. Thus, the limitation period increases. If you are not
capable of handling the IRS problems in case of tax debt then you can use
the service of a tax relief professional. He will help you to get rid of
the troubles. But you will have to pay him too.
Manuel Davis Jr is a CPA and writer for
If you need help with Unpaid Taxes please visit the site or call us at
(800) 717-2797.

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