Legal Question in Tax Law in Oregon

Re: Statute of Limitations on Federal Taxes Owed

I am responding to your question, even though an answer has already been posted, because that answer was not fully accurate. My colleague stated that the statute of limitations (on collection) is ten years from the later of the date the return was filed or the due date of the return. In fact, the statute of limitations is ten years from the date of assessment, which is typically not the same as either the due date or the date the return is filed. Indeed, in some situations the IRS can make an assessment even though no return is filed at all (through the so-called "substitute for return" process).

To determine the collection statute expiration date (or "CSED" in IRS jargon), you need to get a transcript of your account. There you will find the original assessment date, as well as entries for other things (such as those mentioned by my colleague) that may have extended the statute of limitations. You can also call the IRS and ask straight out for them to tell you the CSED shown on their computer. One would normally expect the statute of limitations on collection to have run on a 1992 tax liability, but you need to carefully review the transcript to see what is really going on.

More information on the statute of limitations is available in an article on this subject I wrote for the Maryland Society of Accountants, which is posted in the articles section of my website at www.bjhaynes.com.

Good luck.

Re: Statute of Limitations on Federal Taxes Owed

The statute of limitations on collections by the IRS is 10 years from the date of filing or the date the return was due, whichever is later. This can be extended by Bankruptcy, consent, or filing a request for an Offer in Compromise.

You should immediately review this with a tax attorney. My website has information on tax collections:

www.taxesq.com

I hope this helps!

Ron Cappuccio