IRS Time Period for Collecting Owed Taxes

By law, the IRS has the authority to collect any owed Federal IRS taxes for up to 10 years from the date your tax liability was assessed. There are a few circumstances where the 10-year collection period is suspended:

• a request for a tax settlement/offer in compromise or payment installment agreement
• a request for a CDP hearing until Appeals issues a CDP Notice of Determination or, if you seek review in the Tax Court, until the Tax Court’s decision becomes final, including appeals to a United States Court of Appeals.
• a request for innocent spouse relief
• during bankruptcy while the automatic stay is in effect, plus an additional six months.
• while you are living outside the country, for a continuous period of at least six months.

Of course the result or end of any of those circumstances above will no longer protect your from the IRS ability to collect taxes from you. For instance, after the Tax Court or the Court of Appeals make some sort of decision and a short grace period, the IRS will be coming back knocking for the money.