How long does the IRS have to collect taxes on an SFR or Substitute for Return? From Tax Debt Advisors, Inc.
IRS Substitute for Return
The normal period of time for the IRS to collect on a tax debt is 10 years. However, the time does not start until an assessment has been made. For example, if the IRS did a substitute for return for the year 2013 in 2018, the 10 year period would end in 2028, not 2023. The date of assessment is not when you signed or mailed in the return, it is when the IRS posts the tax liability which can be several weeks or months later. There are actions you can take that will extend the time period know as the Statute of Limitations. These include filing a bankruptcy, Offer in Compromise, signing a waver, etc. Taxpayers are allowed to file back tax returns any time after the IRS files an SFR tax return to lower the tax liability but the process can take up to a year to get it accepted. If you file a return that is over three years past the due date including extensions, and no payments have been made within two years, the IRS will not pay a refund. Call today for a free confidential consultation.
Scott Allen, E.A. – Tax Debt Advisors, Inc helping with back tax return problems