How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

I Have tax liens for forms 940 & 941 (qtrs 3&4,1997 and qrts

Resolved Question:

I Have tax liens for forms 940 & 941 (qtrs 3&4,1997 and qrts 1,2,3 & 4,1998) . I filed all returns on time but failed to pay the tax. I was a sole Proprietor of this business. The IRS first filed liens on 11/20/98 and refiled on 07/02/99. When does the statute run on thesse taxes?
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello ldmchale,

Do you happen to have copies of those liens that you can refer to?

Customer: replied 8 years ago.
I Have copies of my tax transcripts that show the filing dates of the liens. Don
Expert:  Merlo replied 8 years ago.
Hello again ldmchale,

Although it is a generally accepted principle that the IRS has 10 years from the assessment date to collect an old tax debt, in reality they have an extra 30 days beyond that point before they actually have to release the debt.

I am going to give you a couple of links below which you may or may not have already researched. One link is to IRC Code 6325 which specifically states:

"The Secretary shall issue a certificate of release of any lien imposed with respect to any internal revenue tax not later than 30 days after the day on which -
The Secretary finds that the liability for the amount assessed, together with all interest in respect thereof, has been fully satisfied or has become legally unenforceable."

The second link is to a publication from the IRS regarding the Guidelines for Notices of Federal Tax Liens and Centralized Lien Processing. Please refer in particular to page 3, the section entitled "Self Releasing Liens" which states:

Self-Releasing Liens
A lien usually releases automatically 10 years after a tax is assessed, if the statutory period for collection has not been extended and the IRS extended the effect of the lien by re-filing it. When a lien is self-released, the Notice of Federal Tax Lien itself is the release document.

The lien is considered self released if the:
·     date for refiling has passed and
·     IRS has not refiled the original Notice of Federal Tax Lien.

Taxpayers should check the column titled Last Day for Re-filing on the Notice of Federal Tax Lien to determine if the lien is self-released.

So in summary, the IRS only has 10 years (120 months) from the assessment date to collect a tax debt, but they have an additional 30 days beyond that point before they are obligated to actually release the lien. So your current tax lien should be released on 08/02/99, since the last refiling date was 7/2/99.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.

Merlo and 2 other Tax Specialists are ready to help you