Statute of Limitations on Taxes
Owing money to the IRS can be overwhelming. When you file your tax return and a balance results, knowing your options on how to best address it is very important. The first thing to know about owing a balance to the IRS is that it has a shelf life, or IRS statute of limitations. This means that the IRS won’t be on your back about a debt for the rest of your life—their collection power is bound by a statute of limitations. While this might seem like good news for anyone that owes the government agency an outstanding balance, the length of time that the IRS can collect on your debt is not always as clear cut as it seems. You may receive an IRS notice CP501 as a reminder of balance due. It’s important to understand how long the collectible window lasts for your individual circumstances, and it’s essential that taxpayers understand how their actions could extend the period during which the IRS can pursue them for a tax debt.
An IRS Statute of Limitation is a time period established by law to review, analyze and resolve taxpayer and/or IRS tax related issues. Once that time period passes, the IRS can no longer assess additional tax, allow a claim for refund by the taxpayer, or take collective action.
At Wasvary Tax Services we have multiple years of experience with helping our clients with IRS Tax payment plan situations. Our expertise can help guide you in what can often seem like a totally overwhelming, perhaps even impossible, process.
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