IRS Publication 4235: How Long the IRS Can Collect Tax

The Internal Revenue Service (IRS) operates under a specific legal timeframe for collecting taxes, known as the Collection Statute Expiration Date (CSED). The rules governing the CSED are found within the Internal Revenue Code. Understanding this timeline is important for any taxpayer with an outstanding liability, as it dictates how long the agency can legally pursue collection actions.

The Standard Collection Period

The IRS generally has ten years to collect a tax debt. This ten-year clock begins on the date of the tax assessment. A tax assessment is the formal recording of a taxpayer’s liability, which occurs shortly after a tax return is filed, whether by the taxpayer voluntarily or as a substitute return created by the IRS.

Once the assessment is made, the ten-year collection period starts, and the IRS can use various methods, such as liens and levies, to collect the amount owed. If the ten years pass without the debt being fully paid, and without any events that alter the timeline, the IRS loses its legal right to collect the remaining balance.

Events That Suspend the Collection Period

Certain actions taken by a taxpayer can pause, or “suspend,” the ten-year collection clock. A suspension temporarily stops the CSED countdown, and the clock resumes where it left off once the suspending event is resolved.

One of the most common suspending events is submitting an Offer in Compromise (OIC). While the IRS evaluates the OIC, the collection clock is paused. The suspension continues until the offer is accepted, rejected, or withdrawn, and for an additional 30 days after a rejection. Requesting a Collection Due Process (CDP) hearing after receiving a lien or levy notice also suspends the collection period until the determination from the hearing becomes final.

Filing for bankruptcy protection is another event that halts the CSED clock. The collection period is suspended for the duration of the bankruptcy proceeding, plus an additional six months after the case is concluded. Requesting Innocent Spouse Relief also pauses the collection statute for the spouse making the claim. Being outside of the United States for a continuous period of at least six months will also suspend the collection period.

Events That Extend the Collection Period

Distinct from a suspension, an extension adds a specific amount of time to the CSED, creating a new, later expiration date. A taxpayer may agree to extend the CSED by signing Form 900, Tax Collection Waiver. This is often done as part of a negotiation with the IRS.

For example, the IRS may require a taxpayer to sign Form 900 to be approved for an Installment Agreement (IA). By signing the waiver, the taxpayer gives the IRS more time to collect the debt in exchange for the ability to make smaller, monthly payments.

Determining Your Specific CSED

The only way to know your precise Collection Statute Expiration Date is to obtain it directly from the IRS. The CSED for each tax period is calculated and maintained by the agency, factoring in the initial assessment date and any subsequent suspensions or extensions. This date is not typically shown on standard tax bills or notices.

The most reliable method for finding your CSED is to request an IRS Account Transcript. You can use the “Get Transcript” tool on the IRS website to access this document online after verifying your identity. Alternatively, you can complete and mail Form 4506-T, Request for Transcript of Tax Return, to the IRS.