how far back can irs collect back taxes

The IRS can collect back taxes for a certain period, which is known as the statute of limitations. The statute of limitations for collecting back taxes is typically 10 years from the date the tax was assessed. This is stated in the Internal Revenue Code Section 6502.

Here’s how it works:

1. Assessment date: The IRS assesses the tax debt, which is usually the date the tax return is processed or the date the IRS sends a notice of deficiency.
2. 10-year collection period: The IRS has 10 years from the assessment date to collect the tax debt.
3. Expiration date: If the IRS doesn’t collect the tax debt within the 10-year period, the debt is considered uncollectible and is written off.

However, there are some exceptions and events that can extend or suspend the 10-year collection period:

• Filing for bankruptcy: If you file for bankruptcy, the collection period is suspended while the bankruptcy case is pending.
• Offer in Compromise (OIC): If you submit an OIC, the collection period is suspended while the IRS reviews and processes your offer.
• Installment agreement: If you enter into an installment agreement, the collection period is suspended while you’re making payments.
• Taxpayer assistance orders: If you request taxpayer assistance, such as a hardship suspension, the collection period may be suspended.
• Court proceedings: If the IRS is involved in court proceedings to collect the tax debt, the collection period may be extended.
• Waiver or consent: If you waive or consent to extend the collection period, the IRS may have more time to collect the tax debt.

It’s essential to note that even if the 10-year collection period expires, the IRS may still try to collect the tax debt if:

• You file a tax return: If you file a tax return within the 10-year period, the IRS may still process the return and assess any tax due.
• You receive a refund: If you receive a refund within the 10-year period, the IRS may still apply the refund to the outstanding tax debt.

If you’re dealing with back taxes, it’s recommended that you consult with a tax professional or the IRS directly to understand your specific situation and options.