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Know Your IRS Statute Of Limitations If You Have Not Paid Taxes

How long does the IRS have to try to collect incomplete or unpaid back taxes from you? The answer to this question depends on various factors. The most important one is whether you filed a tax return or not.

If you did file a return, the IRS’ statute of limitations to assess taxes, collect back taxes or penalize you are as follows:

  • Three years to assess taxes after you have filed a return
  • Six years to assess taxes after you file a return with a substantial omission on the return of more than 25% of your gross income
  • Ten years to file a lawsuit and collect on back taxes through methods such as levies, liens and wage garnishment

The 10-year statute of limitation may be extended if you enter into an installment agreement with the IRS that allows for partial payment of the amount due and includes a waiver of the 10-year time limit.

The IRS has no statute of limitations for taking legal action against you in any of these cases:

  • You filed a false or fraudulent tax return.
  • You intentionally evaded taxes.
  • You did not file a tax return.

If any of the above describes your situation, please understand that waiting to see what might happen can be a recipe for a disaster. To prevent the worst of outcomes, consult with a skilled tax law attorney who can help you tackle and overcome your tax problems. Kundra & Associates, P.C., can be the resource that you need to implement the best remedial strategy with the least chance of criminal charges, liens or levies.

Let Us Guide You On What You Can Do About Back Taxes

The IRS statute of limitations that applies to your situation will help determine what your options are if you have not paid taxes or failed to file a return for one or more years. Schedule a consultation with a lawyer by calling 301-637-8130 or by sending an email inquiry.