The Statute of Limitations as a Defense to a Tax Liability
There are limitations on the IRS’s authority to collect taxes. Under federal law, the IRS has a maximum of 10 years to collect on a tax debt and after that they have little to no recourse. This is called a Statute of Limitation. The time period starts on the date the tax is officially assessed. The respective tax return must have been timely filed. In most cases, at the expiration of the 10-year period, the tax debt is eliminated. However, there are exceptions and in some cases the statutory limit can be extended. Kresch Tax Resolution Services can tell you if you qualify for this defense to a tax liability.