tax debt: The "10-Year" Tax Expiration Deadline
- 09/14/20 03:10 PM
As a general rule, the IRS only has 10 years to collect your tax debt, at which point, the debt expires and is no longer collectible. (As with all IRS issues, there are some exceptions to the rule.) The 10-years starts ticking down on the date that the tax is assessed. Once the 10-year time period has run out, the debt basically just goes away. However, there are some things that taxpayers do that can extend that date. 1) Bankruptsy - any time that the tax payer is in bankruptsy and the tax cannot be collected upon, the expiration date gets extended for the … (1 comments)
tax debt: Why did the IRS make up my tax return?
- 09/14/20 02:50 PM
What happens with the IRS sends you a tax bill for a year that you did not file a tax return? This is what happens when the IRS has documentation that indicates that you made money (it could be a W2, 1099, or any other document issued to your social security number), but you did not file a return claiming that income. The IRS can then create was is called a "Substitute for Return" (or SFR) in which they create a tax return for you based on the information they have, and then send you the bill that they calculated. There are many … (1 comments)
tax debt: What is the first step in negotiating with the IRS? Compliance.
- 09/14/20 02:27 PM
The first thing everyone asks about their IRS debt is "can we negotiate it down"? While the answer may be "yes", the IRS will not even consider your offer or your payment plan agreement if you are not in "tax compliance". What does this mean in IRS language? In order to be in "compliance" with the IRS, it means that you are current on at least the last 6 years of tax returns and that you have paid or are actively paying in all of your actively accruing taxes. If you are a W2 employee, that means that you are having taxes withheld from your check. If you are self employed, that … (1 comments)
tax debt: Can Withholding Your Tax Return Help Hide You From The IRS? Fresno, CA
- 05/11/20 10:05 AM
I hear this one a few times every year: "I owe the IRS a lot of money this year. If I don't file my taxes, they won't know that I owe them, and I won't have to pay it." In a world where you are the only one who reports to the IRS, that strategy might be a great one! However, that is not the world we live in. You know all of those forms you receive every year that your accountant asks you for? W2s, 1099s from every bank and contract gig, etc? What most people do not realize is that one copy … (3 comments)
As a general rule, the IRS only has 10 years to collect your tax debt, at which point, the debt expires and is no longer collectible. (As with all IRS issues, there are some exceptions to the rule.)
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