Tax Term of the Week

Statute of Limitations - The IRS has set specific time periods before expiration of certain actions (i.e. to collect a tax, make an assessment to an account, to request a refund, to file bankruptcy, etc).

The most common statute for tax debtors, the collections statute, is usually 10 years after the liabiliy is assessed. However, these terms can be extended due to such things as bankruptcy and failed Offer-In-Compromises.