From: Hanover Park, IL

Dear TaxMama,

I withdrew my offer in compromise on 07/10/2000. The IRS agent I worked with said the statute of limitations for collections was 5 years from date the offer was withdrawn.

I have already passed the 10 year mark on the assessment.

Has it expired?

Bob

 

 

Dear Bob,

How interesting. I've never heard that one before.

Hmmm....

The IRS collections statute of limitations is 10 years from the date of assessment.

Of course, to that 10 years, you must add the time from when you submitted the Offer until it was formally rejected or closed. And if you ever filed an appeal or Tax Court petition, add those days or months.

For instance, the Offer was open for 6 months and three days. So your statute is 10 years, 6 months and 3 days.

Once you've added in all that time...look to see the date of the original assessment (or revisions due to audits or adjustments through any notices). If you add the time to the original audit date - and the time is past, your debt is extinguished, gone, uncollectible, nada, zip!

i.e. your debt was assessed on July 6, 1994. Add 10 years, 6 months and three days = January 9, 2005.

If your time is up, call IRS 800-829-1040 and ask them what they are showing as the statute date for your debt. Believe it or not, they will tell you the truth.

If it's no longer collectible, ask IRS to arrange to issue lien releases for any liens they have filed. They'll tell you how. Or... read this article for instructions.

I hope this helps!

Best wishes,
Eva Rosenberg, MBA, EA