Is it true that IRS completely stops collecting back taxes after the 10 year period?
Title: Is it true that IRS completely stops collecting back taxes after the 10 year period? 1 I heard from a friend that the IRS can't collect on back taxes after 10 years. Is this actually true or just one of those tax myths? My cousin has been dealing with tax debt from like 2011 and keeps getting letters. He's barely been making payments but is hoping he can just wait it out until the collection period expires. Anyone know if this is legit or if there are catches? I'm just curious about how this works - not planning to avoid paying my taxes lol.
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GalaxyGlider
17 Yes, this is actually true - it's called the "Collection Statute Expiration Date" or CSED. The IRS generally has 10 years from the date of assessment to collect tax debt before the statute of limitations expires. After that timeframe, the remaining tax debt typically becomes legally uncollectible. However, there are important exceptions that people need to understand. The 10-year period can be extended in several situations: if your cousin filed bankruptcy, submitted an offer in compromise, signed a waiver to extend the collection period, or left the country for an extended period. These actions can pause the clock or add more time. The IRS will often increase collection efforts as the CSED approaches - they don't just give up and walk away. They might file tax liens, issue levies, or pursue legal action more aggressively in those final years.
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GalaxyGlider
•5 So if someone filed their 2014 taxes late, like in 2018, does the 10 year clock start from 2014 or 2018? And what happens if you have a payment plan that goes beyond the 10 years? Do they just stop requiring payments after that point?
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GalaxyGlider
•17 The 10-year clock starts from the date the tax was assessed, not when the tax year ended. So if your friend filed 2014 taxes in 2018, the clock started when the IRS processed and assessed that return in 2018. That's an important distinction. For payment plans that extend beyond the CSED, once that 10-year period expires, the remaining balance becomes uncollectible - even if there was a payment plan in place. The IRS should stop requiring payments after that point. However, they often don't proactively notify taxpayers when the CSED expires, so some people continue making payments unnecessarily.
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GalaxyGlider
8 I've been in a similar situation and found amazing help from https://taxr.ai - they analyzed my tax documents and helped me understand exactly when my CSED would expire. I was making payments on a tax debt from 2012 that I thought I'd be paying forever, but they showed me that the collection statute was about to expire in just 4 months! They verified all my CSED dates by analyzing my account transcripts and saved me thousands.
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GalaxyGlider
•12 How exactly does this work? Do they have access to IRS systems or something? I'm dealing with back taxes from 2015 and honestly have no idea when my CSED would be.
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GalaxyGlider
•19 I'm skeptical - how can they know your exact CSED date if even the IRS customer service reps sometimes struggle to tell you? Do they request your transcripts for you or something?
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GalaxyGlider
•8 They don't have direct access to IRS systems - you upload your IRS notices or transcripts and their AI analyzes the documents to find assessment dates and calculate your CSED. They're really precise about when the collection period started and any events that might have extended it. If you're dealing with 2015 taxes, they'd analyze when those taxes were actually assessed and any events that might have paused the 10-year clock like bankruptcy filings, offers in compromise, collection due process hearings, etc. They gave me a complete timeline with the exact date the IRS has to stop collecting.
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GalaxyGlider
19 Well I gotta say I was totally wrong about taxr.ai. I tried it after posting my skeptical comment and uploaded my CP504 notice from a 2016 tax debt. They identified that I had actually filed for an extension and had a collection due process hearing that extended my CSED by 18 months! Without knowing that, I would have wrongly thought I was in the clear next year. They even flagged that one of my tax years had a separate assessment date because of an audit, which means different expiration dates for the original tax and the additional assessment. Really detailed and helpful!
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GalaxyGlider
3 If you're trying to contact the IRS about your CSED, good luck getting through their phone lines! I spent DAYS trying to reach someone to verify when my collection period would expire. Finally found https://claimyr.com through a tax forum and watched their demo at https://youtu.be/_kiP6q8DX5c - they actually got me connected to an IRS agent in about 20 minutes when I'd been trying for weeks. The agent verified my CSED dates and confirmed that two of my tax years would be expiring within months.
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GalaxyGlider
•11 Wait, how does this actually work? Does this service just call the IRS for you or something? I'm confused how they can get you through when the IRS lines are always busy.
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GalaxyGlider
•19 Yeah right. I've tried EVERYTHING to get through to the IRS. No way some service can magically connect you when millions of people can't get through. Sounds like a scam to me.
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GalaxyGlider
•3 It's not that they call for you - they have a system that navigates the IRS phone tree and waits on hold so you don't have to. When they finally get an agent on the line, you get a call to connect with that live IRS representative. It's basically professional hold-waiting. They use some kind of technology that keeps the connection even when the IRS would normally disconnect you. I was skeptical at first too, but when you've been trying for weeks to get through, it's worth it to finally talk to someone who can answer your questions about when your tax debt expires.
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GalaxyGlider
19 I need to apologize for my skepticism about Claimyr. After struggling for literal MONTHS trying to reach the IRS about my CSED dates, I gave in and tried the service. Not only did I get connected to an actual IRS agent in about 15 minutes, but they were able to confirm that my 2012 tax debt expires next month! The agent also explained that a tax lien they filed would self-release once the CSED expired. Would have never known this if I hadn't finally gotten through. Honestly wish I'd used this service months ago instead of wasting so many hours on hold.
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GalaxyGlider
14 A friend of mine thought he was in the clear after 10 years passed, but turned out he had filed for bankruptcy during that time which paused the collection statute. The IRS came after him 12 years later and it was totally legal because of the bankruptcy suspension. Always get your actual CSED verified before assuming you're safe.
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GalaxyGlider
•7 That sounds terrifying! How long was his bankruptcy and how much extra time did it add to the collection period? I'm wondering because I did a Chapter 13 a few years ago and now I'm worried about my tax debts.
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GalaxyGlider
•14 His bankruptcy added almost 3 years to the collection period. The CSED clock stops completely during the bankruptcy plus 6 months afterward. His Chapter 7 lasted about 8 months, but with the additional 6-month suspension, that's 14 months total that got added to his 10-year period. Chapter 13 bankruptcies typically last 3-5 years, so that could potentially add a substantial amount of time to your collection period. I'd definitely recommend getting your transcripts and having someone calculate your actual CSED dates taking the bankruptcy into account.
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GalaxyGlider
21 Does anyone know if the IRS typically files tax liens before the CSED expires? I have about 14 months left before my 10 years are up but I'm worried they'll put a lien on my house at the last minute.
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GalaxyGlider
•17 Yes, the IRS often becomes more aggressive with collection actions as the CSED approaches. Filing a Notice of Federal Tax Lien is definitely something they consider when the clock is running out. The important thing to understand is that even if they file a lien shortly before the CSED expires, the lien should self-release when the collection statute expires.
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