When Does The IRS Stop Collecting Back Taxes

If you are tired of dealing with the IRS with regard to your back taxes and wonder when does IRS stop collecting back taxes? There is good news for you.

The Internal Revenue Service is given a time period of 10 years, by the Internal Revenue Code, to collect tax debts from a taxpayer. This is called 'Statute of Limitations' on the IRS for collecting back taxes. After this ten year period, all the remaining debts of a taxpayer are forgiven and the person no more has to deal with the IRS with regard to his/ her back taxes.

So, stop questioning when does IRS stop collecting back taxes and see how much time to your 10year period is left. The IRS starts calculating the time from the time it assess your back taxes. This means that when the IRS finds out that you have tax debts they start calculating the 10 years time period of a taxpayer. This process is called 'assessment' and it usually takes place when:

• The IRS gets to know that you owe tax money when you file your tax return.


• In case you do not file tax return, the Internal Revenue Service will estimate your tax return and add the estimated amount of money you owe in their official records.


• When the IRS completes the audit of your tax returns

The Internal Revenue Code6502 (a, 1) holds the legal answer to your question when does IRS stop collecting back taxes. It states that after the Internal Revenue Service completes its assessment, it has a period of 10 years to collect back taxes from a taxpayer, during which it can either seize a person's salary, bank account and possibly his property but once the 10 year time period is completed, the IRS cannot take any action against the taxpayer and all of his/ her remaining tax debts are forgiven.

In order to know when does IRS stop collecting back taxes and how much time is left until the expiration of ten year period, in your case, you can either directly contact the internal Revenue Service or take help of a professional attorney to get the transcripts of your IRS account which will confirm the end date of your 10 year period.





source: http://freedomtaxaccounting.com/when-does-irs-stop-collecting-back-taxes/