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Question

Hi,

I worked on Johnston Atoll from 1992 to 1997. I did not claim federal taxes 1997 and was told by the IRS thatr I needed to pay back taxes to them in 2001 for the taqx year of 1997. Since then I used American Tax Relief to negotiate a re-payment schedule with the IRS. The agreement was achieved in March of 2006. With the IRS telling American Tax Relief that if I paid $600 dollars a month until the statute of limitations runs out on their (IRS) claim that I would be free and clear by April or May of 2009? I do not remember the exact month. Since then, I have not recieved any information from the IRS and I called American Tax Relief and they contacted the IRS, with the IRS telling them that they made a mistake in caluculating the termination of my statute of limitations and that I will neede to continue to make my $600 monthly payment to them until December of 2011. I feel I am being given capricious and erronous information from all parties involved. I need some help.

Dan

Submitted: 102 days and 21 hours ago.
Category: Tax
Value: $45
Status: CLOSED

Accepted Answer

Dan,

 

The IRS's statute of limitations to collect a balance where fraud is not involved is 10 years from the date of assessed tax. The IRS initially has 3 years to assess the tax. Certain actions, like an agreed upon extension, can extend that 10 year period. In your case, The IRS had until 2001 to assess the tax, which would have then created a 10 year period beginning on January 1, 2001. This would reasonably fall in the same time as the December 2011 cut-off period that you received.

 

I am limited to only advising you that the date given to you seems reasonable. If you are not satisfied with the information ATR has given you, you may always call the IRS yourself at XXX-XXX-XXXX to inquire about the status of your specific account. Please let me know if you have further questions.

 

Regards,

 

Mark D

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Expert: Mark D
Pos. Feedback: 99.6 %
Accepts: 
Answered: 8/12/2009

Tax Preparer

MBA, CTEC Registered, CPA Firm Experience with Business and Individual Tax Returns and Issues

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