The Internal Revenue Service (IRS) has a specific time frame in which it can collect unpaid taxes. This time frame is known as the collection statute expiration date (CSED). After the CSED has passed, the IRS is generally prohibited from taking any further collection actions against the taxpayer.
What is a CSED?
The CSED is generally 10 years from the date the tax return was filed. However, there are a few exceptions to this rule. For example, the CSED is extended to 15 years if the taxpayer filed a fraudulent return or failed to file a return at all.
What happens when a CSED expires?
When a CSED expires, the IRS is generally prohibited from taking any further collection actions against the taxpayer. This means that the IRS cannot:
- Levy the taxpayer's wages or bank accounts
- Seize the taxpayer's property
- File a lawsuit against the taxpayer
What if the IRS contacts me after my CSED has expired?
If the IRS contacts you after your CSED has expired, you should respond immediately. The IRS may be able to collect the taxes you owe even after the CSED has expired if:
- You signed a waiver extending the CSED
- You made a payment on the taxes you owe after the CSED expired
- You filed a fraudulent return or failed to file a return at all
What should I do if I think my CSED has expired?
If you think your CSED has expired, you should contact the IRS immediately. You can do this by calling the IRS at 1-800-829-1040 or by visiting the IRS website.
How can I avoid having my CSED expire?
The best way to avoid having your CSED expire is to file your tax returns on time and pay your taxes in full. If you cannot pay your taxes in full, you should contact the IRS to discuss a payment plan.
Conclusion
The CSED is an important date for taxpayers to be aware of. If you do not pay your taxes in full by the CSED, the IRS may be able to collect the taxes you owe even after the CSED has expired.
Frequently Asked Questions
- What is the CSED?
The CSED is the date by which the IRS must collect unpaid taxes.
- How long is the CSED?
The CSED is generally 10 years from the date the tax return was filed. However, there are a few exceptions to this rule.
- What happens when a CSED expires?
When a CSED expires, the IRS is generally prohibited from taking any further collection actions against the taxpayer.
- What if the IRS contacts me after my CSED has expired?
If the IRS contacts you after your CSED has expired, you should respond immediately. The IRS may be able to collect the taxes you owe even after the CSED has expired if you signed a waiver extending the CSED, made a payment on the taxes you owe after the CSED expired, or filed a fraudulent return or failed to file a return at all.
- What should I do if I think my CSED has expired?
If you think your CSED has expired, you should contact the IRS immediately. You can do this by calling the IRS at 1-800-829-1040 or by visiting the IRS website.
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