IRS Tax Debt Statute of Limitations
One effective way for obtaining tax relief is to allow the collection period to expire on the Collection of Tax. To know whether or not this type of Tax Relief is a viable alternative to other methods of tax relief, you have to figure out the Tolling Period. The Tolling Period is like a clock that starts and stops and determines the ten year State of Limitations.
If a taxpayer is close to the ten year Expiration Period, for collection of the tax, this option needs to be explained to the taxpayer. At Spectrum Tax Relief we go over all your options to determine which tax relief strategy will work best with your tax situation.
The IRS may try to pressure a taxpayer into signing a waiver of the 10 year Statute of Limitations. They may try to garnish your paycheck or bank account, and use that as leverage to try to get you to sign. Depending upon your circumstances, and how long you have to go before the CSED, or Collection Statute Expiration Date, pursuing the Statute of Limitations as a Tax Relief option, may or may not be in your best interest. Knowing all of your options is usually the best method for determining which way to go. If you decide to pursue the Expiration Period, having a Tax Professional guide the way is the best method.