The IRS takes the decision to use employee tax withholdings to pay business operating expenses rather than the IRS quite seriously. The owners and managers of the business who make these decisions will find the IRS coming not only to the business, but to them, to recover a portion of the withholdings. This is [...]
Statute of limitations on collections
A client came in today with an older tax liability that appeared to have only two years left on the IRS statute of limitations on collection. The client had not heard from the IRS in years. A statute of limitations is the time the IRS has to do something. For IRS collection cases, it is [...]
If you cannot pay your delinquent taxes because of an economic hardship, the IRS can suspend collection efforts against you. This does not mean your debt is forgiven; just that the IRS will defer collection and not take your wages or bank account. Internal Revenue Service Policy Statement 5-71 permits hardship status on IRS accounts, [...]
Here are five more situations in which the IRS is barred from taking collection action against you: When the timeframe to collect the liability has expired. The IRS has 10 years to collect a liability from the date it puts the liability on its books. When the 10 years is up, the tax is cleared [...]
The list of when the IRS cannot take property is fairly extensive, so I will do this in parts to break it down simply. Here is Part I of when the IRS is prohibited from taking collection action: When there is insufficient equity in the property. There must be sufficient net proceeds from the sale [...]
With more money sitting delinquent in the US Treasury than the government has resources to collect, this is a great question. All of that “quiet” debt does go eventually go away. The IRS has 10 years to collect a tax debt. The IRS refers to this as a “Collection Statute Expiration Date.” Internally, IRS [...]
