“I am also a CPA with over 40 years experience. Tired is correct about statute of limitations being 10 years. “
Here is his statement:
“Statute of limitations on taxes owed is 10 years from the due date of the return or the date filed, whichever is later.”
True if they don’t pursue legal action OR if there is fraud, intent to skip out on your taxes or missing return.
To be more accurate, ten years from date tax was assessed. An unfiled return would not start statute of limitations. Fraud would give IRS more time to assess a tax but statute is still 10 years. If IRS thinks you might skip out of debt then they will increase collection actions but statute is still 10 years.
As said before,a lien on an asset would survive the collection statute and result in collection of debt after 10 years is up.
Various actions the taxpayer may take would extend 10 years, including bankruptcy, filing an offer, appealing a balance due.