Statute Of Limitations On Irs Debt
What is the statute of limitations on IRS debt? This is an important question and the answer depends on the state you live in, for example in California there is only six years. The IRS states, “A federal tax debt is not discharged by a bankruptcy proceeding unless the period specified in the document elapses.” However this is the case in many other states including Colorado, Delaware, Florida, Hawaii, Kentucky, Maryland, Massachusetts, Montana, Nevada, New Jersey, New York, Oregon, Pennsylvania, and Washington. If you owe the IRS money and do not qualify for the six-year period then there is no statute of limitations on your IRS tax debts. The IRS will send a notice to your billing address informing you that you are two months behind in your payments. Two months is the standard timeframe. You can challenge this with the local office for your state. If this is the case then the burden of proof is with you.
Is the Statute Of Limitations On Irs Debt 6 years?
If you do qualify for a six-year statute of limitations on your IRS tax debts you are not out of luck. The state laws will determine what is best for you. The state may offer a wage garnishment or interest holiday to get your bill paid in full. The state tax debt relief department will work with you and your creditors to come up with a payment plan. You can also ask for an extension if you want or need one. One thing you should be aware of is that just because you have reached the statute of limitations on an IRS debt does not mean the debt has been discharged. For example, it may have been discharged but you did not file all the required forms or the state statute is different from the federal statute. You need to contact the local state tax agency. A state tax agency can give you information about tax debt relief programs, and any applicable state laws. This can save you time and money in the long run.
It is very important that you understand all the applicable regulations and rules for filing such a suit. This can prevent huge problems. You will not be able to claim the entire debt if the IRS finds out that you filed in error. They will also be able to seize any payments you made out of pocket and this will go towards your tax liability. Even if you win, there is no guarantee that you will be able to pay off the entire debt, and in some states you are not even given the money back until all the interest is added. Understanding your states statutes of limitations on IRS tax debt is important for tax professionals. You will want to make sure you fully understand what is allowed and what is not. When you have a case like yours, it is wise to seek legal advice from a professional tax lawyer. This is especially true if your state has a statute of limitations on IRS back taxes.