Tax Law
My husband (he's self-employed)owes a tax debt from 1995. We also owe jointly for 2000, 01, & 02. We filed timely but didn't have the money to pay what we owed. We are not deadbeats, we just had a really bad financial period and it took a while to recover. The IRS refused an Offer in Compromise in 2004 & insisted we agree to a payment plan that barely covers the accruing interest and penalties and will not satisfy the total owed over the next ten years. Every payment we have made since March/1004 has been applied to 1995. My question is, ''Isn't there a 10 year SOL on collections for tax debts?'' If this is the case, shouldn't all payments we've made since 12/2005 be applied to the next tax year we owe for? I so appreciate this service and any answer you might have.
1 Answer from Attorneys
Re: Tax Law
There is a 10 year statute of limitations on collections. There are some exceptions, so I can't guarantee your 1995 taxes are finished. When did the tax get assessed? Did you file timely by April 15, 1996?
On the other taxes, did you file the OIC yourself, or did a tax professional do this for you? Sometimes there is wiggle room under an OIC.
You are right, the interest, penalties, can eat you up. It's difficult to ever catch up when paying out over a period of years. There may be other options, depending on size of debt, etc.
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