When Does IRS Debt Expire?
If you owe back taxes, one of the biggest questions on your mind is probably: When will this debt finally go away? The IRS doesn’t collect forever, but the timeline isn’t always straightforward. The key rule to understand is the 10-Year Statute of Limitations on IRS collections.
The 10-Year Statute of Limitations
The IRS’s collection timeline begins once your tax is formally assessed. From that date, the agency generally has 10 years to collect through wage garnishments, levies, liens, or other enforcement actions. After that, the IRS is legally barred from collecting.
For example:
If your tax was assessed on April 1, 2018, the statute of limitations would typically expire on April 1, 2028.
Sounds simple, right? Not always.
What Can Extend the Statute?
The 10-year expiration is not set in stone. Certain events can extend or “pause” the collection period. These include:
Filing for bankruptcy – The clock stops while your case is pending, plus an additional 6 months after.
Submitting an Offer in Compromise – While the IRS reviews your offer, the statute is paused.
Requesting an installment agreement – The clock may stop while negotiations are underway.
Living abroad for 6+ months – Time outside the country can extend the statute.
Filing certain appeals – Collection appeals and litigation can also put the statute on hold.
These pauses are known as tolling events, and they give the IRS extra time beyond the original 10 years.
Why Knowing Your Expiration Date Matters
If your statute expiration date (CSED) is approaching, it may be in your best interest to avoid actions that extend the timeline. For example, jumping into an Offer in Compromise without knowing your CSED could backfire if you’re close to the finish line.
How to Find Out When Your Debt Expires
The IRS won’t make it easy to figure out when your debt expires. Your Collection Statute Expiration Date (CSED) is buried in transcripts and affected by tolling events like appeals or past settlement requests.
Former IRS Agent shares step-by-step guidance to pinpoint your IRS tax debt expiration and create a winning strategy...
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Key Takeaway
IRS debt doesn’t last forever, but the 10-year rule comes with exceptions that can give the agency more time to collect. Understanding your Collection Statute Expiration Date is critical to making the right moves.
At BackTaxCentral, we believe you deserve clarity and control over your financial future. Knowing when your tax debt expires can help you decide whether to ride out the clock or take proactive steps toward resolution.
