I didn't start filing returns until 2014. I entered an installment agreement in 2013 for taxes back to 2005 (accepted by the IRS) and paid it monthly until 2017 when the IRS put my agreement on hold to "reevaluate my ability to pay more," to paraphrase. I submitted my income/expense financials, and the IRS never resumed my existing agreement or increased it. The last time the IRS sent me an annual debt notice was November 2023, with statements dating from 2008-2013. There were no lien or collection threats, just "annual reminder" statements of what I owe for each year. My question is, would my installment agreement extend the CSED, particularly given the indefinite pause of the agreement? I would think that any stipulations on extending my collectible debt would've run out by now considering I'm now 11 years out from my most recent debt, but I'm sure the IRS can collect debt from 1950 if they can find a loophole somewhere. They haven't sent me anything with levy/lien/garnishment threats since my installment agreement began in 2014. Sorry for the long comment. Appreciate the info in this video.
I have a 2010 tax debt that is still lingering. The tax return was filed on 8/11 and should have had a CSED of 10 years from it. However, they just applied to small overpayment from the last return I just filed to that debt. The only thing I did that may have extended it by a month or so was I filed for a payment plan which was rejected in 2017. How do I fix this and have it removed from my IRS balance?
This could be a complicated situation, but the first step is understanding when the IRS thinks it will fall off. Call them up and ask for your CSED for 2010.
Hi Vicki. Assuming you filed your 2009/2010 tax return timely, that tax debt should have fallen off by now. As for the years you haven't filed over the past decade or so...the 10-year clock never would have started ticking since you didn't file a return for these years (unless the IRS filed returns for you - an IRS-prepared return is called a substitute for return or "SFR").
I hired a tax defense attorney(tax defense metwork) they got me into cnc status with a csed date of 5/15/24. I owe 9700. Just received my 504 letter of intent on 2/26/24. Will my csed pass before they are able to file Leinster or garnish wages?
You're probably OK. After sending the CP504, the IRS is legally able to levy your state tax refund, so it may be wise to hold off on filing your state tax return (and your federal tax return, for that matter, if you're owed a refund on it) until after the CSED passes. However, the IRS cannot levy your bank account or garnish your wages until it sends you a notice informing you of your right to a Collection Due Process hearing. This is typically the LT11 (or LT1058 if you've been assigned a revenue officer, which it doesn't sound like you have). The IRS said they are now sending out collections notices eight weeks apart. Eight weeks form 2/26/24 is 4/22/24, which is only a little over three weeks before your CSED of 5/15/24...that's not a lot of time. If you really want peace of mind, I'd suggest you call the IRS and request a 90-day collection hold...they *do* appear to be granting such collection holds even if they will run the CSED! In terms of a lien, they can do that now, but they likely won't...the lien would just automatically drop off when the CSED is reached anyway.
Mine was from 2009, but they said they didn't assess it until 2012, and Illinois says they have 20 years to recoup, and they're going to take all 20. 😢
Yes, many states unfortunately have a 20-year collections statute, which makes them a lot less likely to agree to an offer in compromise since they’d likely get more than being offered in an installment agreement over the X number of years until their 20-year collections statute ends.
If we request a csed, will that affect the 10 year time limit? My bf has debt owed from 2013 and they are still trying to go after him for it now in 2024, including taking his income tax return from this year. He has not worked (on the books) since then until last year. Does the 10 year ''rule'' still apply? He thinks his ex boss might have been committing fraud because he told my bf (they were all a bunch of dumb 18 year olds) that he'd file their taxes for them (and filed as independent contractors, yet they were employees) and I guess never did. the total is now up to 53 freaking grand! due to interest.
This depends on the civil penalty. Was this a trust fund recovery penalty for unpaid trust fund taxes (i.e., employees' share of payroll taxes)? Corporate and payroll tax obligations die with the business unless personally assessed to the owner (such as via the trust fund recovery penalty mentioned above).
Yup, the TFRP has a 10-year statute as well. Note that in exceptionally large cases, the IRS can reduce the assessment to a judgment and thereby extend the statute, but that is an expensive process for the IRS in which it must involve the DOJ.
How can I get ahold of a real person at the IRS? I filed the beginning of this year and have still yet to get my return. I have gotten 2 letters stating "we do not need any further information we just need 60more days" the last 60 days has ended last month and did not get another letter so what should I do?
That is a very common notice that could mean anything...could mean they are questioning something on your return...could just mean they're behind in processing refunds...if you really need the funds, consider reaching out to the IRS Taxpayer Advocate Service to see if they can figure out what's going on.
You might be thinking of the common advice to retain tax records for at least 7 years. But the IRS' statute of limitations on collections is 10 years, subject to certain tolling events, under Internal Revenue Code § 6502.
IRS does not go away! They will put you on payment plans non collectable the tax and interest will not go away! If you are fortunate enough to that something big happens for you like me and I might add I paid a lot of taxes on that! Because I had good fortune they were going to seize my bank account! I ended up paying taxes on money I never even made! You can’t talk to anyone !They don’t correct their mistakes and you pay the prices !They ruined my life!
Started watching your videos before starting college, now I’m 1 year away from starting M.Acy 🙂
That is awesome - congrats and thank you for the support! Good luck with your program!!!
Good afternoon
Hi Tameka. Don't tell anyone but it's my birthday haha.
What about the debt owed do I have to pay the money if I don’t have it
Great question! Here are my thoughts on your situation: ua-cam.com/video/D1-IIbTSGCU/v-deo.html
I didn't start filing returns until 2014. I entered an installment agreement in 2013 for taxes back to 2005 (accepted by the IRS) and paid it monthly until 2017 when the IRS put my agreement on hold to "reevaluate my ability to pay more," to paraphrase. I submitted my income/expense financials, and the IRS never resumed my existing agreement or increased it. The last time the IRS sent me an annual debt notice was November 2023, with statements dating from 2008-2013. There were no lien or collection threats, just "annual reminder" statements of what I owe for each year.
My question is, would my installment agreement extend the CSED, particularly given the indefinite pause of the agreement? I would think that any stipulations on extending my collectible debt would've run out by now considering I'm now 11 years out from my most recent debt, but I'm sure the IRS can collect debt from 1950 if they can find a loophole somewhere. They haven't sent me anything with levy/lien/garnishment threats since my installment agreement began in 2014.
Sorry for the long comment. Appreciate the info in this video.
I have a 2010 tax debt that is still lingering. The tax return was filed on 8/11 and should have had a CSED of 10 years from it. However, they just applied to small overpayment from the last return I just filed to that debt. The only thing I did that may have extended it by a month or so was I filed for a payment plan which was rejected in 2017. How do I fix this and have it removed from my IRS balance?
This could be a complicated situation, but the first step is understanding when the IRS thinks it will fall off. Call them up and ask for your CSED for 2010.
Smart man.
Thanks, Diane!
I haven't filed since 2010, thats when I was admitted. I've payed a couple of payments, now does that restart the date again?
Hi Vicki. Assuming you filed your 2009/2010 tax return timely, that tax debt should have fallen off by now.
As for the years you haven't filed over the past decade or so...the 10-year clock never would have started ticking since you didn't file a return for these years (unless the IRS filed returns for you - an IRS-prepared return is called a substitute for return or "SFR").
I hired a tax defense attorney(tax defense metwork) they got me into cnc status with a csed date of 5/15/24. I owe 9700. Just received my 504 letter of intent on 2/26/24. Will my csed pass before they are able to file Leinster or garnish wages?
You're probably OK. After sending the CP504, the IRS is legally able to levy your state tax refund, so it may be wise to hold off on filing your state tax return (and your federal tax return, for that matter, if you're owed a refund on it) until after the CSED passes. However, the IRS cannot levy your bank account or garnish your wages until it sends you a notice informing you of your right to a Collection Due Process hearing. This is typically the LT11 (or LT1058 if you've been assigned a revenue officer, which it doesn't sound like you have). The IRS said they are now sending out collections notices eight weeks apart. Eight weeks form 2/26/24 is 4/22/24, which is only a little over three weeks before your CSED of 5/15/24...that's not a lot of time. If you really want peace of mind, I'd suggest you call the IRS and request a 90-day collection hold...they *do* appear to be granting such collection holds even if they will run the CSED! In terms of a lien, they can do that now, but they likely won't...the lien would just automatically drop off when the CSED is reached anyway.
Mine was from 2009, but they said they didn't assess it until 2012, and Illinois says they have 20 years to recoup, and they're going to take all 20. 😢
Yes, many states unfortunately have a 20-year collections statute, which makes them a lot less likely to agree to an offer in compromise since they’d likely get more than being offered in an installment agreement over the X number of years until their 20-year collections statute ends.
Does the penalty and interest also go away after the 19 year assessment date?
If we request a csed, will that affect the 10 year time limit?
My bf has debt owed from 2013 and they are still trying to go after him for it now in 2024, including taking his income tax return from this year. He has not worked (on the books) since then until last year. Does the 10 year ''rule'' still apply? He thinks his ex boss might have been committing fraud because he told my bf (they were all a bunch of dumb 18 year olds) that he'd file their taxes for them (and filed as independent contractors, yet they were employees) and I guess never did. the total is now up to 53 freaking grand! due to interest.
No, it will not affect the 10-year time limit. Full explanation here: ua-cam.com/video/GjzIuLxhUdY/v-deo.html
My sfrs are 9/15 &11/16 should I set up payment ?
Does this count for civil penalties also on business that went bankrupt and closed.
This depends on the civil penalty. Was this a trust fund recovery penalty for unpaid trust fund taxes (i.e., employees' share of payroll taxes)?
Corporate and payroll tax obligations die with the business unless personally assessed to the owner (such as via the trust fund recovery penalty mentioned above).
@@LoganAllec unfortunately the match that the business had to do was always tough but yes.
Yup, the TFRP has a 10-year statute as well. Note that in exceptionally large cases, the IRS can reduce the assessment to a judgment and thereby extend the statute, but that is an expensive process for the IRS in which it must involve the DOJ.
@@LoganAllec your video pushed me to call them and figure out some things - thanks .
@@MoneyMe72 Good to hear! Also your question is a good one and I think I will be featuring it in an upcoming video this month!
How can I get ahold of a real person at the IRS? I filed the beginning of this year and have still yet to get my return. I have gotten 2 letters stating "we do not need any further information we just need 60more days" the last 60 days has ended last month and did not get another letter so what should I do?
What was the notice number? E.g., 2645C, etc.
2644C
I think it says BO after it
That is a very common notice that could mean anything...could mean they are questioning something on your return...could just mean they're behind in processing refunds...if you really need the funds, consider reaching out to the IRS Taxpayer Advocate Service to see if they can figure out what's going on.
So I did actually find that the other day and called the number and still got nothing but a computer that gave me no answers then hung up on it's own.
I thought that was 7 years
You might be thinking of the common advice to retain tax records for at least 7 years. But the IRS' statute of limitations on collections is 10 years, subject to certain tolling events, under Internal Revenue Code § 6502.
IRS does not go away! They will put you on payment plans non collectable the tax and interest will not go away! If you are fortunate enough to that something big happens for you like me and I might add I paid a lot of taxes on that! Because I had good fortune they were going to seize my bank account! I ended up paying taxes on money I never even made! You can’t talk to anyone !They don’t correct their mistakes and you pay the prices !They ruined my life!
What is the US IRS phone number
I pulled out my 401/ 457 without paying them. That was over 15yrs ago. So do I still owe?
It depends. I responded here: ua-cam.com/video/4RUkI5mrxjk/v-deo.html
Is there a number to call but I really wouldn't want to speak with an agent