If you owe the IRS back taxes, there’s one important fact that can completely change your strategy:
The IRS doesn’t have forever to collect. Under federal law, the IRS has 10 years from the date your tax was assessed to collect what you owe. After that, your balance is legally uncollectible — the debt expires. This 10-year window is called the Collection Statute Expiration Date (CSED).
📘 Official IRS References: Publication 594 — The IRS Collection Process
The IRS 10-Year Rule Explained
The 10-year Collection Statute Expiration Date (CSED) begins on the date the IRS assesses your tax debt — not when you filed, not when you owed, but when the IRS officially records it on your account. Once the CSED expires, the IRS can no longer legally collect — they must cease liens, levies, and wage garnishments, and remove your balance from the system.
When the CSED Clock Starts?
The 10-year period starts on the date the IRS assesses the tax. Assessment occurs when:
- You file a return showing a balance due, or
- The IRS assesses tax from an audit or substitute return (SFR), or
- You agree to a tax deficiency.
💡 Key Concept: If you never filed, the IRS may file a Substitute for Return (SFR). The assessment date of that SFR starts the clock — not the year you originally earned the income.
Events That Pause or Extend the CSED (“Tolling Events”)
Certain actions pause or extend the 10-year clock. These are called tolling events.
| Event Type | Description | How Long It Extends the CSED |
|---|---|---|
| Bankruptcy Filing | From the date you petition, until the court discharges, dismisses or closes the bankruptcy, it suspends the CSED. It extends the CSED another 6 months when the bankruptcy concludes. | Length of bankruptcy + 6 months. |
| Offer in Compromise (OIC) | While we review your OIC application, it suspends the CSED. If we reject it, this suspends your CSED another 30 days. If you appeal the rejection, it suspends the CSED until the appeal concludes. | Duration of OIC + 30 days. |
| Collection Due Process (CDP) Hearing | When we receive your request until you either withdraw it or we make a final determination, which includes the time you appeal, it suspends the CSED. If you receive a final determination and your CSED is less than 90 days, then by law, it extends the CSED to 90 days after our final determination. | Duration of appeal + 90 days. |
| Taxpayer Living Abroad | If you live outside the U.S. continuously for 6 months or more, generally it suspends the CSED for this time. The CSED may be extended by at least 6 months when you return to the United States. | Duration abroad + 6 months. |
| Pending Installment Agreement | While we review your request, it suspends the CSED. If you later withdraw or we reject the installment agreement or propose terminating it, by law, it extends the CSED for 30 days. If you appeal the decision, the CSED is suspended throughout the appeal process. | Duration of review + 30 days. |
| Military Service in Combat Zone | When you enter a combat zone to when you leave, plus 180 days. | Duration of service + 180 days. |
📘 References: Time IRS can collect tax
How to Check Your Own CSED?
You can find a CSED in your account transcript.
📘 Reference: Requesting IRS Account Transcripts
How the IRS Tries to Extend the Statute?
The IRS sometimes persuades taxpayers to voluntarily extend the CSED. A common extension request is when the IRS is reassessing tax through audit adjustments or amended returns.
What Happens When the CSED Expires?
Once the statute expires:
- IRS must stop all collection activity.
- Tax liens should self-release.
- You’re no longer legally required to pay.
💡 However: Expiration doesn’t erase the record — liens filed before expiration may remain visible until withdrawn or released.
Why Legal Representation Matters in CSED Cases?
The 10-year statute may sound simple — but calculating it correctly requires navigating dozens of tolling rules, internal codes, and overlapping actions.
A tax attorney can:
- Determine exact CSEDs across multiple tax years.
- Identify improper extensions or tolling miscalculations.
- Prevent voluntary waivers that extend collection.
- Use CNC or appeals to let the clock run strategically.
- Demand lien releases after expiration.
💡 Important: The IRS sometimes miscalculates the CSED — especially after OICs, bankruptcies, or appeals. Correcting this can instantly erase large balances.
Let the Clock Work in Your Favor
The 10-year IRS statute of limitations isn’t just a technical rule — it’s a legal shield when used properly. Every month that passes brings you closer to freedom from collection, if you stay compliant and avoid tolling traps. A skilled tax attorney can help you calculate your true CSED, stop collection before it restarts, and ensure the IRS doesn’t extend its reach beyond what the law allows.
Contact Pelham PLLC today for a confidential review of your tax transcripts. We’ll determine your exact collection expiration dates, protect your assets, and ensure you never pay more than the law requires.
FAQs
When does the 10-year clock start?
The date your tax is assessed — not when filed or due.
What happens if the IRS misses the deadline?
Your debt is legally expired. You owe nothing, and the IRS must stop all collection activity.
How do I know my CSED has passed?
Order transcripts or ask your attorney to verify through the IRS Practitioner Priority Service.
Can bankruptcy reset the 10-year rule?
No — it pauses it during the case, then resumes.
What if the IRS files a lien before expiration?
The lien remains until the debt expires or is withdrawn — but it cannot be enforced after the CSED.
