Discussion:Statute of Limitations extension
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Discussion Forum Index --> Tax Questions --> Statute of Limitations extension
| 26 March 2006 | |
| I have a client who the IRS is after for collection concerning a tax levied March 1, 1990. What items would extend the statue beyond the 10 year limitation? Where could one get the information as how the IRS has determined that in this case the statue extends beyond the 10 year period? | |
| 27 March 2006 | |
| OIC requests and OICs granted. Agreements to extend the SOL. Certain installment payment agreements, I believe (not sure), there are others. I would check a service or reference on practice and procedure on SOL to get all the items that toll the SOL.
Obtain the client's IRS master file and decode it. It has the information on events that toll the SOL. | |
| 27 March 2006 | |
| Also, Federal tax liens against taxpayer's property in existance at the time of lien creation survive SOL. ie, enforcement of the federal tax lien survives the SOL for collections. So you have to find if and when the service filed tax lien and what property this attached. | |
| 9 October 2007 | |
| In case of a filed OIC (Offer in Compromise), no SOL extension if the offer was returned as unprocessable. Check http://www.offerirscompromise.com/guide-to-filing-irs-offer-in-compromise/offer-in-compromise-accept] | |
| 9 October 2007 | |
| Bankruptcy and leaving the country also extend the SOL. When the SOL is up, the liens must be released within 30 days and no longer attach to any property. | |
| 9 October 2007 | |
| "Also, Federal tax liens against taxpayer's property in existance at the time of lien creation survive SOL. ie, enforcement of the federal tax lien survives the SOL for collections. So you have to find if and when the service filed tax lien and what property this attached."
That is not correct - See ยง6322 I think what you might be referring to is that liens on taxpayer's property survive bankruptcy. Bankruptcy may eliminate personal liability but if the IRS has filed a NFTL against property (including assets such as 401K plans) the lien will remain attached to those assets after bankruptcy until the CSED expires. | |
| 9 October 2007 | |
| Watch out, the lean can be turned into a judgement just before the SOL is about to expire. | |
| 9 October 2007 | |
| The original question on this thread is kind of old so I wonder why it is up again.
One issue not raised: If the statute of limitations was extended has IRS REFILED the Notice of Federal Tax Lien. I have noticed the ball gets dropped on this frequently. | |
| 9 October 2007 | |
| I have never seen the IRS refile a tax lien. I am sure it must happen, but not very often. | |
| 10 October 2007 | |
| Mike, I have several cases now where IRS has refiled liens. In one, they blew the refile date so they fell behind other more recent creditors. Needless to say I pointed that out to the Revenue Officer. I initially thought they needed to file a new lien rather than refile in that case, but in fact, a refile was correct. However, they had lost their priority position.
As far as Taxoncall's statement, you make it sound as if IRS simply turns the lien into a judgment. That is simply not true. In select rare cases, IRS asks the Department of Justice to reduce a lien to a judgment. They will do so in cases where there is a large balance due and the IRS and DOJ believes there is a significant chance for collection. It never happens out of the blue and never happens at the last minute. It usually takes several weeks to several months to get everything done depending upon their caseload. I've also had it occur in cases where my client had a tax fraud conviction. Bottom line is that it is rare and it happens in cases where you would expect it to take place. | |
