Raleigh, CPA Firm: How to Stop the IRS from Collecting Old Tax Debt
Do you have an old tax debt that is at least 10 years old? Is the IRS still trying to collect on the old tax debt? Need help with settling IRS tax debt? These are the types of issues that I’ve been helping client with over the last 18 + years in my Raleigh, NC office. The main focus of my CPA practice is income tax representation for individuals who need tax help with the IRS or the North Carolina Department of Revenue. Below is some information on how to address old IRS tax debts.
How Long Can the IRS Collect on Back Taxes?
Contrary to popular belief, the IRS cannot collect on a tax debt forever! In fact, the IRS generally only has 10 years to collect on a tax debt once it has been assessed. So what happens if you don’t pay a tax debt in the 10 year period? It expires! That’s right – the debt expires and is written off as the debt collection is no longer enforceable. But not so fast – the IRS has many tools at their disposable in the form or bank levies, wage garnishments, tax liens, etc. to collect on a debt prior to the 10 year IRS statute of limitations to collect tax debt runs.
Can the Time the IRS has to Collect Taxes be Extended?
Yes, the 10 year time limit the IRS has to collect on tax debt can be extended in certain circumstances. However, those circumstances are generally triggered by an action the person who owes the debt takes and not an action the IRS initiates. Examples of actions that people take which can extend the 10 year IRS statute of limitations are bankruptcy, offers-in-compromises (i.e., “fresh start program”), requests for hearings, tax court, etc. In rare cases, the debt may be referred to Department of Justice where a judgement may add additional years as well.
Why is the IRS Still Collecting from Me? My Tax Debt is Over 10 Years Old?
The IRS does make mistakes from time-to-time when calculating the 10 year statute of limitations. The good news is that the IRS can be challenged and the issued fixed. However, the fix for this issue often involves an in-depth reconciliation of IRS transcripts and other source data to identify coding errors made on an account. Due to the complexities involved, this work is best performed by tax professionals (i.e., CPA, tax attorney, etc.) who specialize in this type of forensic review.
Please feel free to contact me if you or someone you know in the Raleigh, NC area needs help with filing back tax returns or with settling their IRS tax debts. I regularly assist clients in my Raleigh, NC office with unfiled tax returns, removing wage garnishments and bank levies, setting up installment agreements, and filing an Offer in Compromise. I can be contacted by phone at (919) 792-8511 or you can email me directly using this link.
I’m here to help!
Lauren Massie
Lauren Massie, CPA, PLLC
8480 Honeycutt Road, Suite 200
Raleigh, NC 27615
(919) 792-8511
Lauren Massie, CPA, PLLC is based in Raleigh, North Carolina and serves clients throughout the Greater Triangle Area including cities such as Wake Forest, Durham, Cary, Chapel Hill, Morrisville, Holly Springs, Fuquay-Varina, Clayton, Louisburg, Knightdale, Zebulon, Rolesville, Wendell, Hillsborough, Youngsville, Franklinton, Garner, Zebulon, Henderson, Franklinton, Holly Springs, Creedmoor, and Angier.
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