When you’re dealing with unresolved tax debt, one of the most common questions is whether the IRS can pursue it forever. It’s a fair concern. The idea that a tax issue from a decade ago could still be lingering in the background is unsettling—but there are time limits, and understanding them could make all the difference in how you approach your next steps.
At COTTS LAW – A Tax Resolution Law Firm, we guide individuals through complex IRS situations every day, including those wondering whether the IRS is still within its legal window to collect.
What Is the IRS Statute of Limitations?
The IRS statute of limitations refers to the amount of time the federal government has to take action on a tax matter—either to audit your return or to collect an outstanding balance. While these timeframes are clearly defined in most cases, there are important exceptions that can extend or pause the clock.
For audits, the IRS generally has three years from the date you filed your return or its original due date, whichever is later. But that window extends to six years if you failed to report more than 25% of your income. For tax collection, the statute is usually ten years from the date the IRS officially assessed the liability. That ten-year window sounds simple on the surface—but it’s not always so straightforward in practice.
When the Clock Doesn’t Keep Ticking
Certain actions can delay or pause the ten-year statute of limitations, extending the IRS’s ability to collect. If you file for bankruptcy, for example, the statute is paused for the duration of the case plus six months. Submitting an Offer in Compromise will also stop the clock while the IRS reviews your proposal. Even leaving the country for more than six months can toll the statute.
The problem many taxpayers face is that these pauses can add up quietly. A person may assume they’re nearing the end of the collection period, only to discover that previous actions pushed the expiration date back by months—or even years. That’s why having an accurate timeline is critical if you’re facing a long-standing tax balance.
Why It Matters and How We Help
Knowing where you stand with the IRS statute of limitations is more than a technical detail—it can influence every part of your resolution strategy. At COTTS LAW, we help clients determine whether the collection period has already expired or is approaching expiration, and we help them avoid actions that could restart or delay the clock unnecessarily.
Our team reviews IRS transcripts to calculate your Collection Statute Expiration Date and develops a tailored approach based on your specific timeline. If time remains, we advise you on ways to resolve your balance proactively. If the statute is nearing expiration, we work to prevent avoidable extensions that could put you back at square one.
Make the Clock Work in Your Favor
The statute of limitations can be one of the few things working in your favor when you owe the IRS, but only if you understand how to use it. Don’t make assumptions about your timeline, and don’t let missteps cost you years of progress.
If you’re unsure whether the IRS can still collect from you, we’re here to help. Contact COTTS LAW – A Tax Resolution Law Firm for a confidential consultation, and let’s build a strategy around facts—not fear.
