How the IRS Collects Debt: Understanding the 10-Year Rule

📅The 10-year clock starts when you file your tax return or when the IRS files one for you.

📋Certain actions, such as audits, offering compromise, or requesting a Collection Due Process (CDP), can prolong the assessment of additional taxes.

☎️Contact the IRS to find out the exact expiration date of the 10-year timeline, known as the Collection Statute Expiration Date (CSED).

📅The CSED varies from year to year and may even change within a year. Request the latest CSED for each year you owe.

💡Understanding the 10-year rule can help you determine your tax debt status and plan your financial obligations accordingly.

When does the 10-year clock start?

—The 10-year clock starts when you file your tax return or when the IRS files one for you.

What factors can prolong the assessment of additional taxes?

—Actions such as audits, offering compromise, or requesting a Collection Due Process (CDP) can prolong the assessment of additional taxes.

How can I find out the exact expiration date of the 10-year timeline?

—Contact the IRS and ask for the Collection Statute Expiration Date (CSED) for each year you owe.

Does the CSED vary from year to year?

—Yes, the CSED varies from year to year and may even change within a year.

Why is it important to understand the 10-year rule?

—Understanding the 10-year rule can help you determine your tax debt status and plan your financial obligations accordingly.

00:00The IRS has 10 years to collect on your tax debt.

00:27The 10-year clock starts when you file your tax return or when the IRS files one for you.

00:38Actions like audits, offering compromise, or requesting a Collection Due Process (CDP) can extend the assessment period.

00:49Contact the IRS to find out the exact expiration date of the 10-year timeline.

01:00The Collection Statute Expiration Date (CSED) varies from year to year. Request the latest CSED for each year you owe.