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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Is there a statute of limitations on Federal Taxes owed to

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Is there a statute of limitations on Federal Taxes owed to the IRS? I thought it was 7 years from date of inception?

Hello enchantment,


There are different statues of limitations in place depending on the circumstances.


As far as the IRS being able to audit a return, generally they have up to 3 years from the original due date of a return to audit. In cases where your income was under reported by more than 25% for the year, then they can audit that return for up to 6 years from the original due date. In cases where a return was never filed, the IRS is not limited at all as to when they can assess any taxes that you owe.


Once the IRS does audit a return and/or assesses taxes that you owe, they have 10 years time to collect the taxes owed. The clock starts on the dtae the IRS auditor made the final sign off on the assessment.


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


Thank you enchantment, and happy holidays to you.





Customer: replied 7 years ago.
This was 941 amount due of 2710.64 was due 6/30/00. The company has not existed for 6 or 7 years. I realize that does not alleviate the debt. We recently recieved the statement and the interest now is 1957.68. So basically they have until 6/30/2010 to collect. Is this correct?

Hello again enchantment,


That date should be approximately correct. This is assuming that you actually filed the return for that period on time and that the return was not later audited and additional taxes assessed.


So if the last date of assessment was in June of 2000, then the collection time period should expire in June of 2010.


If this was helpful please press the Accept button.


Thank you enchantment



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