Hello...my name is Shane and I am a Certified Public Accountant. I look forward to helping you with your tax question.
Generally, the statute of limitations for the IRS to collect back taxes is 10 years.
Does this help to answer your question or can I provide you with additional assistance.
After the 10 year statute of limitations on collections expires, the IRS is required to release the lien. To accomplish this on a wide scale, the IRS inserts language into the lien that makes it “self-releasing.” That means it is automatically released when the 10 years is up.
This “self-releasing” aspect of a tax lien is right on the face of the lien. Here is what a Federal tax lien says:
“IMPORTANT RELEASE INFORMATION: For each assessment listed below, unless the lien is refiled by the date given in column(e), this notice shall, on the day following such date, operate as a certificate of release as defined in IRC 6325(a).”
Grab your tax lien (I know it may be painful to look at). The top of the document will say “Notice of Federal Tax Lien.” As an overview, in the center of the lien are six columns, identified with letters (a) through (f). Each column lists (a) the type of tax you owe, (b) the tax years, (c) the last four digits of your social security number, (d) the date the IRS put your balance due on its books, (e) the last day the IRS can refile the lien if it needs to, and (f) a balance due.
Note the balance due is not what you owe now; it is not current and does not reflect accrued interest, penalties or any payments you may have made.
As stated on the face of the lien, the lien itself operates as a certificate of release after the collection statute expires. Column (e) gives you that date, which is 30 days after the IRS collection statute expired. Hopefully, for you,the lien ends there, after 10 years.