Time Limits on IRS Collection Efforts
Once you have an assessment our outstanding balance with IRS, the IRS is notorious for aggressively pursuing collection action by issuing levies on your bank accounts and sources of income. Their efforts though cannot last forever. It’s a little-known fact that the IRS has a Statute Of Limitations on collecting amounts owed to IRS. If you have owed money to the IRS for some time, you might be able to work with a tax attorney to get at least some of your IRS debt erased where the Statute Of Limitations is soon to expire.
Generally, the IRS has 10 years from the date the taxes were assessed to collect any past taxes. If you don’t file a return, the IRS will make a deficiency assessment based on a substitute return they file for you, so don’t expect that not filing a tax return will prevent the 10-year period to start.
Beware that States will have their own Statute Of Limitations for the collection of State taxes. In California the Statute Of Limitations is 20 years. If you owe IRS and the State, you can work with tax lawyer in Los Angeles and use the different Statute Of Limitations to your advantage. A consultation with the Law Offices Of Jeffrey B. Kahn, P.C. can help you determine what the best strategy is for you.
The Law Offices Of Jeffrey B. Kahn, P.C. has helped many people avoid collection action by the IRS and State tax agencies. Working with a tax attorney is the best bet for reducing or eliminating the amount you owe.