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Statute of Limitations

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S

skytower

Guest
I understand the statute of limitation on IRS taxes is 10 years.If you can survive the 10 years,and during that time the only action taken by IRS was a tax lien,are you free and clear of that tax obligation.Also,when does the 10 year running time start,from the calander year the taxes were due,or from the time the letter of assessment is sent out and the tax lien filed.Any and all help you could give me in this matter would be greatly appreciated.
 


N

NoJustice

Guest
No 10 year limit

I can't quote you chapter and verse, but I can assure you there is NO 10 year statute of limitations on taxes...
 
S

skytower

Guest
Re: No 10 year limit

Nomads4fun said:
I can't quote you chapter and verse, but I can assure you there is NO 10 year statute of limitations on taxes...
This is the reference for my initial post,it is IRS code taken from the IRS website.It seems very clear to me,i just need some one more learned than myself to give me their opinion.Here is just a part of what is written

IRS Restructuring and Reform Act of 1998
3461 - Procedures for Extension of Statute
of Limitations by Agreement
Section 3461
A. Provision(s) covered: R.R.A. § 3461. Procedures Relating to Extensions of Statute of Limitations By Agreement. I.R.C. § § 6501(c) and 6502(a).
B. Background: Section 6501 of the Internal Revenue Code generally provides that the Service has three years from the date a return is filed to assess additional taxes. Section 6502 generally provides that the Service has ten years from the date of assessment to collect the tax. Prior to the expiration of the limitations period provided by these provisions, the law provided that the taxpayer and the Service could agree in writing to extend the statute of limitations. Congress believed that many taxpayers were not being informed of their rights to refuse to extend the statute of limitations on assessment or to limit the scope of any such extension. In addition, Congress believed that all taxes should be collected within the 10 year statute and that the statute should not be extended.

C. Change(s): The authority to extend the collection statute of limitations by agreement ends on December 31, 1999. Any extension of the collection statute already in effect on December 31, 1999, will expire on December 31, 2002. An exception to this section is provided for extensions related to installment agreements. An extension of the collection statute entered into in conjunction with the acceptance of an installment agreement should be for the period necessary to satisfy the tax liability via the agreement. The legislation provides that the period of limitations for extensions related to installment agreements will expire 90 days after the end of the extension period.

The legislation also requires that taxpayers be advised/notified of their right to refuse to extend the statute of limitations on assessment or in the alternative to limit an extension on the assessment statute to particular issues or for specific periods of time, each time that the Service requests that the taxpayer extend the limitations period.

D. Impact

Because the Service will have to complete collection actions within the 10 year statute in most cases, collection contacts and actions will have to be initiated sooner. Although this is true in general, it is especially true for cases where the collection statute will expire within the next 2 years and for cases where the original collection statute has been extended beyond December 31, 2002.
 

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