COLLECTION EXPIRATION STATUTE DATE
One of the ways that a taxpayer can get out of paying taxes is to allow the 10 year period for collection to expire. The CSED, or Collection Expiration Statute Date, should not be thought of as a flat or straight 10 year period of time, say from January 1st, 2000, until January 1st, 2010. The reason for that is that certain “tax events” can put a hold on the cumulative 10 year period of time that must go by, for the 10 year CSED to expire.
A better way to think of the Collection Expiration Statute Date is to think of a clock that has to run for a full 10 years. Some tax events will stop the running of the 10 year clock. In total, the clock must run for 10 years, IN TOTAL, for the CSED to expire.
First and foremost, understand that the IRS is not in the business of collecting taxes, to simply allow the 10 year period to expire. Once that time frame does approach, the IRS will usually force you to sign a “Waiver of the 10 year Statute”, in return for not going after your bank account, or paycheck.
Yet, occasionally taxpayers slip through the cracks, and the 10 year period is near. As a taxpayer, ask yourself this question, that being the case, “Would you want your tax professional to tell you that was an option?” If you hire a regular tax person, who does not understand this, based on experience in this filed, that option may never even be disclosed to you. It should be, if you are near the CSED. It should be part of discussing every option that you have for dealing with your tax debt.
One of the difficulties that taxpayers have in trying to find out the CSED is that if you ask the Collection Division, the phone numbers available to taxpayers connect you to the Collection Division, what the CSED is, and you owe back taxes, the Collection Division will first ask you “Where you work, where you bank, what your address is”. That is because the number one job of the Collection Division of the IRS, is to COLLECT TAX. Asking that question would probably trigger intense Collection Action against you.
At Federal Tax Resolution we can obtain your Collection Expiration dates, without triggering Collection Action against you. We utilize the tax practitioner unit of the IRS, as they are independent of the Collection Division, used by the tax industry to help individual and business taxpayers. This allows us to obtain your CSED without raising red flags at the IRS.