Glossary

Statute of Limitations on Tax Debt

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The statute of limitations on tax debt limits the time the IRS has to collect unpaid taxes. Generally, the IRS has 10 years from the date the taxes were assessed to collect the debt, after which the debt is no longer legally enforceable. This period is known as the Collection Statute Expiration Date (CSED).

However, certain actions can extend or suspend the statute of limitations, including:

Filing for bankruptcy.
Submitting an Offer in Compromise.
Requesting an Installment Agreement.
Leaving the country for an extended period.

If the statute of limitations expires before the IRS collects the debt, the taxpayer is no longer required to pay the remaining balance. However, the IRS often takes aggressive actions, such as filing liens or levies, before the expiration to ensure payment.

Taxpayers should monitor their CSED date and be aware of any actions that may extend the statute of limitations.

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