Ask a Legal Question
  1. #1

    Join Date
    May 2004
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Limit of 10 years for IRS to collect tax debt?

    I have had a long-standing tax debt which I tried to pay until I became disabled. With no income, I could not continue making payments. I have not heard a peep from IRS since around 1993, and I haven't made any effort whatever to become "invisible" to them. I moved to Mexico, where I could live independently (and frugally) on my SS Disability benefits, but reported fully to the government any information they required of me.

    On the FindLaw.com site, I just found an article in which it mentioned that the IRS normally has ten years to collect a tax debt. That site seems very responsible, so I am deeply interested in obtaining verification of that statement. Years ago, the IRS had told me that a tax debt is forever. Maybe that has changed, or maybe they lied.

    I'm in no position to pay the old tax debt. I'm weak and vulnerable, severely disabled, and I live in Mexico with my SS Disability as my only means of support.

    I have searched the IRS site, but I doubt that this time limit on them to collect back taxes is one which they would want many taxpayers to learn. If the limit exists, though, it is probably somewhere in the laws and regs, but I have no way to find it. To be sure it is real, I'll need to read the actual text and have its citation in the law. Until then, I dare not rely on its reality.

    I haven't dared elect direct deposit. The IRS might have attached the money at the American bank where the deposits are first made before being wired down to the Mexican one. For years, I have suffered with no choice but to receive my benefits as checks, which are often stolen from the Mexican mail service. Each time that happens, I'm in desperate straits.

    I'm not a tax-dodger, never broken a single law, and would pay the debt if I could, but it isn't remotely possible. The original debt occurred many years ago when my purse, containing all my tax records, was stolen from my home. I was self-employed, and had no proof of a single deduction, so I took none that year. The tax bill was more than I could handle, and I've been living in hell ever since, just trying to pay it. The penalties and interest grew faster than my payments reduced the debt, and I only kept paying because it was my obligation to do so, not because it could ever solve the problem. I never disputed the debt, either. Whether fair or not, it was a debt I was stuck with.

    But if the debt no longer exists because of this time limit of ten years that I read about, that is a piece of information which would allow me to have direct deposit. It would also release me from all my years of fear and pointless suffering that gained nothing for either me or the IRS.

    Can somebody please find the text in the law or regulations which places this time limit on IRS and send it to me through a private e-mail, along with the precise citation of the law or reg that is involved? I'd be eternally grateful.



    H. B.


  2. Join Date
    Nov 2003
    Posts
    4
    Thanks
    0
    Thanked 0 Times in 0 Posts
    I believe it's 10 years from the date the tax was assessed (so for example if the tax for 1988 was assessed by the IRS in a formal notice in 2002, they would have until 2012).

    I would recommend you look into doing an Offer in Compromise. Find a tax expert who can practice before the IRS (such as an Enrolled Agent) and inquire about this. Basically you prove that over a five-year period, they will only be able to collect X amount of dollars from you towards what you owe, and they will often then take around 60% of that as a pay-now cash settlement, in full settlement of the debt. But I recommend you do this with the help of a tax professional.

  3. #3
    thelawprofessor's Avatar
    Join Date
    May 2001
    Location
    New York City
    Posts
    7,585
    Thanks
    8
    Thanked 279 Times in 263 Posts
    Quote Originally Posted by LaraC
    I believe it's 10 years from the date the tax was assessed (so for example if the tax for 1988 was assessed by the IRS in a formal notice in 2002, they would have until 2012).

    I would recommend you look into doing an Offer in Compromise. Find a tax expert who can practice before the IRS (such as an Enrolled Agent) and inquire about this. Basically you prove that over a five-year period, they will only be able to collect X amount of dollars from you towards what you owe, and they will often then take around 60% of that as a pay-now cash settlement, in full settlement of the debt. But I recommend you do this with the help of a tax professional.
    This is true and the calculation as to when the statute of limtiations begins to run is correct. See Section 6502 of the Internal Revenue Service Code.
    Forum posts are not legal advice, are for educational purposes only & are not substitutes for proper consultation with legal counsel.

    Need a lawyer? Use TheLaw.com's FREE Case Review now!

  4. #4

    Join Date
    Oct 2004
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Individual Master File

    I received a decoded copy of my IMF which show a transaction code of 150, which relates to having a business in quam. Why is this?

    The Imf also state that the SSN is not valid for the taxpayer using it. Please Explain.

  5. #5

    Join Date
    Mar 2008
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Sorry to bump such an old thread. While I do not own a business, I do have a similar issue. I have back taxes due that are more than 10 years old (95, 96, and 97). These are all due to my ex-husband screwing me over (he was supposed to be paying them, after our divorce settlement, but come to find out he didn't!). Anyways, they contacted me about these a little over a year ago. I filed for hardship, as I couldn't afford to make payments at the time. Now, I am in a position to be able to pay something, but I realized that all the taxes are over 10 years old. I have all my paperwork here and it shows that we were first contacted about owing the money in November of each of the tax years (95's we were contacted about by Nov. 95, etc.). So due to the statute of limitations, shouldn't they be written off? If so, how do I go about getting this done.

    The reason I am here is that I was in the process of filing for an OIC and noticed that I waive my rights to the statute of limitations by filing out the forms. If I can have the taxes written off (or even just some of them), I would much prefer that. Any info would be greatly appreciated.

  6. #6
    Registered User Esteemed Colleague
    Scooterdog's Avatar
    Join Date
    Nov 2007
    Location
    Montana
    Posts
    937
    Thanks
    0
    Thanked 0 Times in 0 Posts
    I thought is was 15 years after the last notice. Perhaps you want to browse the IRS web site, then jump over to the Dept. of Treas.

    Smoke and mirrors. Once you know that, the rest is research.

  7. #7
    Registered User Esteemed Colleague
    Scooterdog's Avatar
    Join Date
    Nov 2007
    Location
    Montana
    Posts
    937
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Quote Originally Posted by emancipation View Post
    I received a decoded copy of my IMF which show a transaction code of 150, which relates to having a business in quam. Why is this?

    The Imf also state that the SSN is not valid for the taxpayer using it. Please Explain.
    This is BS! Patriot nut job crap. IMF was a sorry as series made way back when? Please.

    Don't fall for this people, this is freeman type attitude that will lead to fines, jail, or even worse.

Log in

Log in