How Long Can the IRS Collect Back Taxes?
Generally the IRS has 10 years from the date a tax is assessed to collect it, a deadline called the collection statute expiration date. After that, the remaining debt is usually no longer collectible. The clock can be paused, or tolled, by events such as a pending offer in compromise, bankruptcy, certain appeals, or living outside the US for six months or more. Unfiled returns are never assessed, so the clock never starts.
The IRS has strong collection powers, but they are limited in time.
The 10-year rule
Under 26 U.S.C. 6502, the IRS generally must collect a tax within 10 years after assessment. Assessment usually happens when your return is processed or when additional tax is assessed after an audit. Each assessment has its own date, so one tax year can have several collection deadlines.
What pauses the clock
The collection period can be suspended (26 U.S.C. 6503 and related provisions; IRS), for example while:
- An offer in compromise is pending, and for 30 days after rejection, plus any appeal
- An installment agreement request is pending or under appeal
- A collection due process hearing is pending
- A bankruptcy case is open, plus six months
- You live outside the US continuously for at least six months
- A taxpayer assistance order is in effect
When the clock never starts
If you never filed a return, no assessment has been made, so the collection period has not begun. The IRS can also prepare a substitute return and assess tax later.
Extending by agreement
In some cases the IRS may ask you to agree to extend the collection period, often in connection with installment agreements. Get advice before signing.
How to find your collection date
Request account transcripts for each year and look for the assessment dates and events that toll the clock, or ask a tax professional to calculate the collection statute expiration date.
Is waiting it out a strategy?
Sometimes, for people with very limited income and assets near the end of the period. But the IRS can levy wages and bank accounts, file liens and take refunds in the meantime, and interest continues. Requesting currently not collectible status may pause collection without stopping the clock.
Liens after expiration
When the collection period ends, the federal tax lien generally becomes unenforceable and should be released. See federal tax liens.
Your rights
The Taxpayer Bill of Rights includes the right to finality: to know the maximum time the IRS has to audit and collect (IRS).
A tax lawyer can calculate deadlines and choose between payment plans, offers and other options. See also what to do if you owe back taxes.
Sources
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This article is general legal information, not legal advice, and reading it does not create an attorney-client relationship. Laws differ by state and change over time; talk to a licensed attorney in your state about your situation.