Can the IRS Collect After 10 Years?

Many taxpayers dealing with old IRS debt wonder whether the government can continue collecting indefinitely. Fortunately, the IRS does not have unlimited time. Under federal law, the IRS generally has 10 years to collect unpaid taxes. This deadline is known as the Collection Statute Expiration Date (CSED). However, the rules surrounding the 10-year limit can be complicated, and several actions can extend—or “pause”—the clock. Understanding how the statute works can help taxpayers make informed decisions and avoid unnecessary penalties.

The 10-Year Rule Explained

Once the IRS assesses a tax—typically when you file your return or when the IRS issues an official assessment—the agency has exactly 10 years to collect the debt. When the 10-year window ends, the IRS legally must stop all collection activity. This includes:

• Wage garnishments
• Bank levies
• Federal tax liens
• Collection notices
• Enforcement actions

After the CSED passes, the IRS writes off the remaining balance, and the taxpayer is no longer liable for the debt.

When the IRS Can Collect Beyond 10 Years

Although the rule seems straightforward, several events can extend the 10-year collection period, giving the IRS more time. These include:

1. Filing for Bankruptcy: While bankruptcy is pending, the collection clock pauses. After the case concludes, the paused time is added back to the IRS’s 10-year window.
2. Submitting an Offer in Compromise (OIC): During the OIC review process, the IRS cannot collect, so the clock stops. The extension covers the review period plus 30 additional days.
3. Requesting an Installment Agreement: A pending installment agreement request temporarily suspends collection activity and can extend the statute.
4. Living Outside the United States: If you’re outside the U.S. for at least six months, the CSED is extended by the amount of time you were abroad.
5. Filing an Appeal or Requesting a Collection Due Process (CDP) Hearing: When you appeal IRS collection actions, the clock stops during the appeal and resumes afterward.

These exceptions mean the IRS can, in many cases, collect for more than 10 years—sometimes several years longer.

How to Know When Your CSED Expires

The IRS does not automatically disclose your CSED unless you ask. You can request this information by contacting the IRS directly or working with a tax professional who can obtain the official transcript and calculate the exact expiration date.

If you’re unsure when your IRS collection statute actually expires or whether past actions have extended it, Dimov Audit can calculate your true CSED timeline and help you choose the best strategy for resolving old tax debts. Reach out to our dedicated team today for professional assistance.

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