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Low Cost Tax Relief can help you navigate the Statute of Limitations on tax debt. The IRS has a 10-year limit to collect on a tax debt from the date of assessment and notice letter, but there are circumstances that can extend this period. These include periods of suspension due to bankruptcy, installment agreements, appeals, living outside the U.S. for over six months, and legal restrictions on collection.


Additionally, voluntarily extending the period, signing a waiver form for an installment agreement, having assets under court control, or having a wrongful lien can extend the limit. Low Cost Tax Relief can assist with resolving your tax-related issues and help you achieve relief from IRS tax debt. Schedule a free consultation with one of our tax professionals to learn more about our services.

Sure, let me provide some more information about the Statute of Limitations on tax debt and how it works.

The Statute of Limitations on tax debt is a legal time limit within which the IRS can collect tax debts from taxpayers. The period starts on the date the tax is assessed and the IRS sends the taxpayer a statutory notice of the debt owed. The statutory period is usually 10 years from that date, and if the IRS does not collect the debt within that time frame, the debt is generally considered uncollectible.

However, as I mentioned earlier, there are some circumstances where the Statute of Limitations can be extended, which means the IRS can continue to pursue the taxpayer for the unpaid tax debt even after the 10-year period has expired.

One common way the Statute of Limitations can be extended is if the taxpayer enters into an installment agreement with the IRS. In some cases, the IRS may require the taxpayer to sign a form waiving the ten-year limitations period in order to enter into the installment agreement.

Other situations where the Statute of Limitations can be extended include when the taxpayer files for bankruptcy and the court issues an automatic stay preventing the IRS from taking collection action, or when the taxpayer is living outside the United States for an extended period of time.

It's important to note that while the Statute of Limitations on tax debt can be a useful tool for taxpayers who are struggling to pay their debts, it's not a guaranteed way to have the debt eliminated. The IRS can still take legal action against the taxpayer even after the 10-year period has expired if they believe the taxpayer is trying to evade or defeat the tax or if there is evidence of fraud.

If you're dealing with tax debt and want to explore your options for resolving it, it's a good idea to seek the help of a qualified tax professional like Low Cost Tax Relief, who can provide guidance and assistance with negotiating with the IRS and finding the best solution for your individual situation.

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