tax debt

What is the name of your state?Louisiana. I was wondering how long the IRS has to collect a tax debt. My husband had a gov. loan that he defaulted on in 1986--they wrote it off in 1993-- he was taxed on the written off amount as it was income--does this fall under the 10 year rule and would this past tax year be the final year?

[abezon]

To assess a deficiency: 3 years from the date the return is due OR the day you file it, whichever is later.

To collect a deficiency: 10 years from assessment.

There are exceptions to both limits.

Louisiana---My husband defaulted on a gov. secured loan in 1986- it was written off in 1993. The following year the IRS took his tax refund because the written off debt was income...they have taken his refund every year for the past 10 years---he is now in bad health and is about to receive ss disability--can they take that check or does this fall under the 10 year rule? They put a lein against him in 1996. Thanks for any help you can give--

[abezon]

Why was the forgiven debt treated as taxable income? Forgiveness of debt is not taxable if the debtor was insolvent when the debt was written off. Get thee to a tax pro & amend his 1993 return. He can only get back the last 2 years of payments, but if the underlying debt is cancelled, you can then have the IRS discharge the lien**************