IRS Limitation to Collect a Debt- CSED date explained

As a taxpayer, it is important to understand the concept of the IRS CSED date. CSED stands for Collection Statute Expiration Date, which is the deadline by which the IRS must collect any outstanding tax debt from you. Once the CSED date has passed, the IRS can no longer legally pursue collection of the debt.

The CSED date is determined by the Internal Revenue Code, which specifies a 10-year period for the collection of most tax debts. This 10-year period begins on the date that the tax liability was assessed by the IRS. For example, if you filed your tax return on April 15th, 2021 and the IRS assessed your tax liability on July 1st, 2021, the 10-year period would begin on July 1st, 2021.

It is important to note that there are some circumstances that can extend the CSED date. For example, if you file for bankruptcy, the CSED date is automatically extended for the duration of the bankruptcy proceedings. Additionally, if you enter into an Installment Agreement or Offer in Compromise with the IRS, the CSED date may be extended until the agreement is paid in full.

It is also worth noting that the CSED date only applies to the collection of tax debt. It does not affect the assessment of tax liabilities or the filing of tax returns. You are still required to file your tax returns on time and pay any taxes owed, regardless of the CSED date.

If you have outstanding tax debt, it is important to be aware of the CSED date and how it may impact your situation. If the CSED date is approaching and you are unable to pay your tax debt in full, you may want to consider negotiating an Installment Agreement or Offer in Compromise with the IRS. These options can allow you to pay off your debt over time or settle for a reduced amount, respectively.

At our law firm, we have extensive experience assisting clients with tax debt and collection issues. If you have concerns about your tax obligations or the IRS CSED date, we are here to help. Contact us today to schedule a consultation and learn more about your options.

Useful Website Links

1. IRS Collection Statute Expiration Date (CSED) - https://www.irs.gov/businesses/small-businesses-self-employed/collection-statute-expiration-date-csed
2. IRS Installment Agreements - https://www.irs.gov/payments/payment-plans-installment-agreements
3. IRS Offer in Compromise - https://www.irs.gov/payments/offer-in-compromise
4. Bankruptcy Basics - https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics
5. Internal Revenue Code - https://www.law.cornell.edu/uscode/text/26

- Published by Salar Tavangar, Esq.