Statute of Limitations, Debt and You
Many folks are astonished to discover that there is a statute of limitations on tax debt from the IRS. At the time of this writing, the statute is 10 years. converesely, there are plenty of exceptions to this rule. Also, the IRS knows full well faithfully how much time they have to assemble what is owed to them and their retrieval processes get considerably more aggressive as each passing week ticks off the clock. If you are looking for ways to simply outlast the government, you may not even want to try, as very few folks manage to succeed.
Exceptions to Every Rule
in general speaking, the statute of limitations on tax collection is 10 years; but, there are a number of exceptions to the rule. If you relate for a present in compromise, the collection phase stops at that moment and freezes until the offer has been completely processed. The same goes for attempts to release your debt via liquidation. Since most offers in compromise take at smallest amount a year to process, and bankruptcies can last even longer, this cannot and will not lend a hand you outrun your debt in any way, shape, or form.
Knowing Your Rights
Half the battle when it comes to the statute of limitations, debt and you has to do with knowing your rights. It may be that the IRS will demand you file back taxes that go back more than 10 years, yet, you do not have to. You are required to have valid tax returns on the books for the previous 10 years, and you are responsible for paying all taxes accrued during that period, but not anything else, no matter what the IRS tells you. If you feel that the IRS is trying to get you to pay taxes that you aren’t with authorization required to pay, think contacting a tax professional or even a lawyer.
Getting help out
It is no secret that the modern tax code is extremely dense. When you start to figure in tax codes from previous years on top of what you may already owe, the intact process can turn into not possible to numerals out. If the IRS is hounding you about back taxes, seek the facilitate of a expert at H&R Block, a qualified accountant, or even a lawyer to lend a hand. Even if they aren’t able to assist decrease the total amount of tax you owe, they should be able to clarify what is going on and ensure that you know why you owe money, how the numbers were crunched, and what the accuracy is.
Everything Else
Understanding statute of limitations, debt and taxes is important, and you may end up being one of those lucky ones who fall through the cracks and beat the classification. If you do, congratulations, but chances are you will should to arm yourself with the latest information and a lawyer so you can take on the IRS as paramount you can. You can do a tremendous amount of research on the Internet and an attorney can aid you immensely.
Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.
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