Tampa Tax Attorneys Assisting With Statute of Limitations of Collectability In Sarasota, St. Petersburg, Clearwater and All of Florida

In most instances, the IRS has 10 years to collect a tax debt from a taxpayer. By law the IRS is not permitted to collect tax debts after the 10 year period ends – this period is known as the “collection statute of limitations” or the “statute of limitations of collectability.”

Waiting out this ten year period is not something a typical taxpayer should aim for – the IRS can impose crippling levies, garnishments, and other penalties during that period in attempting to collect the tax debt. Taxpayers that attain Currently not Collectible status for many years, however, may be able to reach the statute of limitations and never have to pay their tax debt.

An additional provision allows that if the IRS does not assess taxes within a three year period of the tax return being filed, they cannot legally collect those taxes that would have been owed unless the taxpayer understated the taxes by 25% or more or if the tax return was fraudulent. This is, in effect, very rare, however such errors are not unheard of and it is therefore essential that a taxpayer be aware of his or her legal rights.

There are important pitfalls and limitations to this statute of limitations. For example, when taxpayers request relief for any given tax year, the IRS is not permitted to collect taxes for that year while that request is pending, however interest and penalties continue to accrue. The request is considered pending, in most cases, from the date the IRS receives the taxpayer’s request. This includes the time the Tax Court is considering a request. After the case is resolved, the IRS can begin or resume collections. The 10 year period will be increased by the amount of time the request for relief was pending, plus 60 days.

Other situations under which the IRS may extend the statute of limitations include:

• Taxpayer files for an Offer in Compromise
• Taxpayer files for Bankruptcy
• Taxpayer is out of the country

• Taxpayer signs a waiver

Floridian taxpayers are encouraged to contact Yesner and Boss, P.L. for a consultation to discuss their rights with respect to statutes of limitations for tax issues. Serving Tampa, St. Petersburg, Sarasota, Clearwater, New Tampa, and areas throughout Florida the tax attorneys at Yesner and Boss, P.L. are committed to obtaining the best possible tax solutions for their clients.