Does The IRS Forgive Tax Debt After 10 Years? (Statute Of Limitations Rules)
When it comes to taxes, the rules can get confusing fast. One tax rule that confuses many taxpayers is the statute of limitations for debt. Many wonder if the IRS has to forgive tax debt after a certain amount of time has passed. And, if so, how does one erase tax debt?
The short answer? Yes, it’s possible you don’t have to pay off back taxes after 10 years have passed. But it’s more complicated than a simple yes or no question.
The IRS offers many opportunities for tax relief, such as the Fresh Start Program. Think of the tax debt statute of limitations as another form of tax relief. And, just like the Fresh Start Program, it has specific rules and qualifications.
Before we lay out how to get the IRS to forgive your tax debt, let’s go through a few important definitions.
What Is Tax Debt?
What Is A Statute Of Limitations?
What’s A Collection Statute Expiration Date (CSED)?
How Does Tax Debt Accumulate?
How To Clear Your Tax Debt (Can The IRS Forgive Tax Debt?)
- The date taxes were due for that tax return year (around April 15th)
- The date the tax return was actually filed