Generally, under article 6502 of the IRC, the IRS will have 10 years to collect liability starting from the date of evaluation. Once this 10-year period or statute of limitations has expired, the IRS can no longer attempt to collect the balance owed by the IRS. Start with the basic rule that the IRS usually has three years after you submit your request to audit you. If you omit more than 25% of your income, the IRS gets twice that time, six years.
However, statutes are often extended, sometimes as a general rule, there is a ten-year statute of limitations for IRS collections. This means that the IRS can attempt to collect outstanding taxes for up to ten years from the date they were assessed. Subject to some important exceptions, after the ten years have elapsed, the IRS must stop its collection efforts. Every year, the statute of limitations expires for thousands of taxpayers who owe money to the IRS.
The IRS generally stops collecting taxes after 10 years from the date your tax evaluation began. Therefore, this agency is subject to a 10-year statute of limitations that prevents it from collecting taxes more than 10 years late. The IRS generally has three years to audit your tax returns. However, there are exceptions that extend the statute of limitations to six years or even longer.
The time the IRS has to conduct an audit depends on several facts and circumstances. As a result, even if it's been many years since you didn't file a tax return or pay your taxes, don't assume that you're exempt from liability. Still, you should consult a tax lawyer about whether you could be responsible for those taxes. In the case of specialized programs, the appropriate program manager has the authority to approve the law's expiration report for submission to the Director of Specialized Programs.
If the Service processes a tax return prepared under the authority of IRC 6020 (b), evaluating the tax accordingly, the evaluation date will begin the collection limitation period under IRC 6502 (a) (, but the evaluation limitation period under IRC 6501 (b) does not begin (.