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The general rule, according to Treasury Regulations section(NNN) NNN-NNNNb)-1, is that the collection statute is suspended when the taxpayer's assets are in the control or custody of any court, such as a typical bankruptcy filing. The collection statute is suspended during the bankruptcy proceedings and for a period of six months after the bankruptcy proceedings have terminated.
You will need to find out when your statute of limitations began. When evaluating the time remaining on the collection statute, you should review the transcript of the your account for bankruptcy filings and court conclusion dates. Often, tax liens remain filed in the clerk of court's office in the county of the taxpayer's residence. Usually 10 years after a tax is assessed, a lien releases automatically if the IRS has not filed it again.
You can contact the Centralized Lien Unit by calling the toll free telephone number (1-800-913-6050).
At any time you may request an updated lien payoff amount to show the remaining balance due by calling the toll-free customer service telephone number at 1-800-913-6050. An IRS employee will issue you a letter with the current amount that must be paid before we release the Notice of Federal Tax Lien.
Precisely when the statute of limitation has commenced can be ascertained from a transcript of the taxpayer's account, which can be obtained by filing IRS Form 4506-T. The transcript of the taxpayer account will identify the date of all assessments with respect to the tax years at issue. Securing the transcript of account is an essential step to properly verify the time remaining on the collection of statute. You will need this information to calculate when your time for the collections is finished.
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