April owed the IRS more than $20,000 for the 2012 tax year. The liability originated while she was married, but the couple divorced two years later. After the divorce, her former spouse fell out of contact with the IRS, and the full burden of the tax debt remained with April.
Over the years, the IRS took aggressive collection action. April’s bank account was levied multiple times, and any tax refunds she was entitled to were applied to the outstanding balance. Although the IRS generally has a 10-year window to collect a tax debt, certain events can pause that timeline. In April’s case, a qualifying situation extended the IRS’s collection period by approximately two additional years.
In August 2024, we obtained and reviewed April’s IRS account transcripts and communicated directly with the IRS to confirm the status of the debt. At that point, the remaining balance for the 2012 tax year was just over $12,000. More importantly, we confirmed that the Collection Statute Expiration Date (CSED) for that liability was November 12, 2024.
With the expiration date approaching, we developed a strategy focused on preventing further enforcement actions while allowing the statute to run. By carefully managing the timing and avoiding actions that would extend the collection period again, we were able to keep the IRS at bay through the expiration date.
As of November 12, 2024, the IRS can no longer legally collect the 2012 tax debt. April is no longer stressed about the IRS keeping her refunds or levying her bank account. This case highlights the importance of understanding IRS statutes and developing a strategy based on accurate transcript review and timing.
The focus of our practice is helping individuals and businesses across the United States resolve their IRS tax problems. We also serve clients locally in the Las Vegas, Nevada, and St. George, Utah areas. If you or someone you know is dealing with IRS problems, contact me at 702-533-8984 or candy@numbercruncherllc.tax.
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