How Can I Find Out Why the Collection Statute Expiration Date Was Extended in the USA?

Question from t, How Can I Find Out Why the Collection Statute Expiration Date Was Extended in the USA?

Answer from AI:

The Collection Statute Expiration Date (CSED) is the maximum time the Internal Revenue Service (IRS) can collect taxes, penalties, and interest from you. Typically, the IRS has ten years to collect, but certain actions can extend this period. If you believe your CSED has been extended and you’re unsure why, there are several steps you can take to find out.

Review Your IRS Account

The first step is to review your IRS account. You can view your tax account online to check the status of your tax debt and the CSED. If the CSED appears to be extended, it may be due to one of the reasons listed below.

Common Reasons for CSED Extension

The CSED can be extended for several reasons, including:

• Bankruptcy: If you filed for bankruptcy, the CSED is generally extended for the period of the bankruptcy plus six months.
• Offer in Compromise: If you submitted an Offer in Compromise that was rejected by the IRS, the CSED is extended by the period of time the offer was pending plus 30 days.
• Collection Due Process (CDP) Hearing: If you requested a CDP hearing, the CSED is extended by the period of time the hearing was pending plus 90 days.
• Installment Agreement: If you entered into an installment agreement with the IRS, the CSED is extended by the period of time the agreement was in effect.
• Voluntary Extension: In some cases, you may have agreed to extend the CSED. This is usually done to give you more time to pay your tax debt.

Request a Transcript

If you’re still unsure why your CSED was extended, you can request a transcript of your tax account from the IRS. This will provide a detailed record of all actions taken on your account, including any that may have extended the CSED.

Consult a Tax Professional

If you’re having trouble understanding your tax account or the reasons for the CSED extension, it may be helpful to consult a tax professional. They can review your account, explain the reasons for the extension, and help you understand your options moving forward.

Remember, this information is intended to provide a general understanding of the law. It’s not intended to provide specific legal advice. Always consult with a legal professional for personalized advice.