RS Collections Statute of Limitations

Allowing the Collection period to expire on the Collection of Tax is an effective method for obtaining Tax Relief. To determine the ten year State of Limitations, from the date of assessment of the tax, the Tolling Period must be determined. The Tolling Period is like a clock. It needs to run for a cumulative period of ten years, for the Statute of Limitations period to expire. Certain things make the clock run, and certain things make the clock stop. Determining the total time the clock has run can be tricky yet is essential, to knowing whether this type of Tax Relief is a viable alternative.

If a taxpayer is close to the ten year Expiration Period, for collection of the tax, this option needs to be explained to the taxpayer. Most tax resolution firms that push “Offers in Compromise, Pennies on the Dollar” will not necessarily explain this option to a taxpayer. We believe the way we can best serve our clients, is to give them all of the available options for dealing with a tax debt, give guidance on the likely outcomes of pursuing those options. The best option then materializes for the taxpayer to pursue.

The IRS may try to pressure a taxpayer into signing a waiver of the 10 year Statute of Limitations. They may try to garnish your paycheck or bank account, and use that as leverage to try to get you to sign. Depending upon your circumstances, and how long you have to go before the CSED, or Collection Statute Expiration Date, pursuing the Statute of Limitations as a Tax Relief option, may or may not be in your best interest. Knowing all of your options is usually the best method for determining which way to go. If you decide to pursue the Expiration Period, having a Tax Professional guide the way is the best method.

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