The IRS has tremendous powers when it comes to the collection of back tax debt. The standard limitations The IRS usually has 10 years from the point an “assessment” is made to collect the debt. However, there are several types of circumstances that allow this timeframe to be stretched. In some cases, there is no statute of limitations.
In the case in point, the tax debt was associated with unpaid payroll taxes, and the IRS is particularly aggressive at pursuing all parties who may be held liable for the non-payment of payroll taxes. There is no statute of limitations if you have not filed a return for a given year, or in the event of civil tax fraud.
The issues surrounding IRS colleciton matters, IRS audits and the payment of back tax debt can be quite complex. The notion that the IRS settles all tax debt for pennies on the dollar is simply a myth. The truth is much harsher, and it is important to seek expert and deeply experienced guidance from a seasoned tax attorney.
If you are dealing with the IRS for an audit, or on a collection matter we invite you to contact us for a free consultation at 866-631-3470.s
