Legal Question in Tax Law in Missouri

What is the statuate of limitations on past due tax, interest and penalties owed

MY company has paid all back 940/941 taxs due from previous years and previously submitted an ''offer and Compromise'' which was returned to us neither, rejected nor accepted. We now have a lien against our business and feel that the IRS must be concerned about statuate of limitations on these past due penalties and interest. A revenue officer stopped by my place of employment. This is for penalties and interest going back to 1996, 1997 and 1998. I re-financed our business in 2000 and paid all taxes and tried to negotiate a settlement through the offer and compromise process. How long does the IRS have to pursue a company and what type of discount could I negotiate, if any.

Thanks,

Perplexed


Asked on 5/21/04, 12:38 pm

1 Answer from Attorneys
Burton Haynes Burton J. Haynes, P.C.

Re: What is the statuate of limitations on past due tax, interest and penalties

The statute of limitations on collections is ten years from the date of assessment. This rule, however, is shot through with exceptions. These include an extension for the period of time an offer in compromise is pending, plus up to one additional year depending on when the offer was filed. For more on this, see the article I wrote on this subject for the Maryland Society of Accountants, posted in the articles section of my firm's website, www.bjhaynes.com.

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Answered on 5/21/04, 3:12 pm


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