6.1.2 Collection Statute Expiration Date

Generally, the IRS has 10 years after a timely assessment to collect taxes.1 The date after which the IRS may no longer collect taxes is referred to as the Collection Statute Expiration Date (CSED). The IRS Practitioner Priority Service (866-860-4259) will tell you the CSED. It is common for the IRS to miscalculate the CSED. Therefore, do not rely on the IRS calculation. If the IRS collection employee won’t review and decide a CSED defense, request a Taxpayer Assistance Order by a Form 911 from your Taxpayer Advocate Service office.

The 10-year time limit can be tolled by deficiency notices, Tax Court proceedings, collection due process hearings, requests for innocent spouse relief, Offers in Compromise, bankruptcy, Taxpayer Assistance Orders, and appeals of wrongful levies or liens.2 If the 10-year period is close to expiration, be careful about taking action that may extend limitations period.

Being placed into Currently Not Collectable status does not toll the CSED. If the suspension action was taken by a separated spouse, determine whether that action also suspended the limitation period as to your client. 

If your client lived in a federally declared disaster area, the I.R.S. may have extended the limitation periods under its I.R.C. § 7508 (A) authority. For example, after Hurricane Katrina, the IRS deadlines for collection were extended for 1 year.3

• 1I.R.C. § 6502.
• 2I.R.M. 5.1.19.3. Note that some cases may involve several actions that suspend the statute of limitations. See, e.g., I.R.M. 5.1.19.3.6.3 (giving the IRS’s position on how to calculate the suspension periods that result from an innocent spouse claim made within a collection due process appeal).
• 3IRS Notice 2006-20 (extending limitation periods to August 28, 2006 for taxpayers affected by Hurricane Katrina).