An IRS Statute of Limitations Applies To Both Tax Debt and Tax Refunds

The IRS Tax Statute of Limitations works two ways: it imposes a time limit on how long the IRS can collect taxes owed, and puts a limit on how long a taxpayer has to claim a tax refund.

The Collection Statute End Date (or CSED) for the IRS to collect taxes owed is 10 years from the date the tax was assessed, not when the tax was due. For example, if you file a return late, the statute starts from the time the return was filed. Certain factors, such as filing Bankruptcy or an Offer in Compromise (OIC), extend the Statute of Limitations

We can advise you of the CSED for a tax period and offer resolution to stop enforcement activity until the CSED for the tax period expires.

If you are owed a refund, you have three years from the date the return was due, or two years from when the tax was overpaid, to file and claim the refund. If you don’t act within the statute, the refund is gone forever—there are no exceptions! Every year millions of dollars are lost to expired refunds.

To see how the Statute of Limitations affects to your tax stituation, please contact us at (877) 829-2455 to schedule a initial consultation.