How far back can the IRS claim you owe money?

Tax season can be a bit stressful for many Americans, but for those with unfiled returns or back taxes, the stress levels can be overwhelming. The Internal Revenue Service (IRS) is one of the most powerful collection agencies in the country and it has considerable power to pursue any unpaid taxes you owe. The agency also has a long memory when it comes to collecting what it’s owed.

That said, the IRS can’t come after you for your old tax debts indefinitely. Most debts have statutes of limitations that eventually render them uncollectible — and the same is true for your tax debts. The IRS operates under its own set of rules, though, and the timeline for tax collection is more complex than many realize. It also differs from the typical credit card debt or medical debt statute of limitations. If you’re trying to wait out your old tax debt, it’s important to have a clear understanding of the time frames involved. So how far back the IRS can go to collect taxes? That’s what we’ll detail below.

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How far back can the IRS say you owe money?

The IRS generally has a 10-year statute of limitations for collecting taxes. This period begins on the date of assessment, which typically occurs when you file your return or when the IRS creates a substitute return on your behalf. After this 10-year period expires, the IRS can no longer legally collect that tax debt.

However, several important caveats apply to this seemingly straightforward rule. First, the IRS has up to three years from when you file a return to audit it and assess additional taxes. If the IRS suspects you substantially underreported your income (by 25% or more), this assessment period extends to six years.

If you never filed a return for a particular year, though, there is actually no statute of limitations. The IRS can come after you for those unfiled years indefinitely. This makes non-filing a particularly risky route to take. There is also no time limit in cases of fraud or tax evasion. If the IRS can prove fraudulent intent, they can pursue collection regardless of how much time has passed.

Several actions can also extend or “toll” the 10-year collection period, including:

• Filing for bankruptcy
• Submitting an Offer in Compromise
• Requesting a collection due process hearing
• Living outside the United States for an extended period
• Signing a waiver to extend the collection period

Given these exceptions and extensions, some taxpayers have found themselves facing collection actions for tax debts dating back 15 years or more.

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What are my options for getting rid of back taxes?

The good news is that you don’t have to wait for your tax debt to become uncollectible to deal with it. There are options to consider, including:

Installment agreements 

If you cannot pay in full immediately, the IRS offers payment plans. The terms depend on how much you owe and your financial situation but could include:

• Short-term payment plans (120 days or less), which have no setup fee
• Long-term payment plans, which could require setup fees depending on your income and payment method

Offer in Compromise (OIC) 

The Offer In Compromise program allows you to settle your tax debt for less than the full amount. The IRS considers your ability to pay, income, expenses and asset equity. 

Currently Not Collectible (CNC) status

If paying your tax debt would cause severe financial hardship, the IRS may temporarily classify your account as currently not collectible. This doesn’t eliminate your debt, but it does pause collection activities. Interest and fees will continue to accrue, however.

Penalty abatement 

In some cases, the IRS will remove penalties if you can demonstrate reasonable cause for not filing or paying on time. Some of the common qualifying reasons include natural disasters, serious illness or bad advice from a tax professional.

Tax relief services 

If dealing with the IRS on your own feels overwhelming, you may want to work with a tax relief company instead. These companies specialize in helping taxpayers negotiate settlements and navigate IRS programs. The services they offer include:

• Tax debt negotiation: The professionals employed by these services can work to reduce your tax liability through installment agreements, Offers in Compromise or penalty abatement.
• Audit representation: If you’re facing an IRS audit, these tax professionals can represent you and ensure your rights are protected.
• Tax lien and levy assistance: If the IRS has placed a lien on your property or is threatening wage garnishment, these tax relief services can help negotiate a resolution to remove or prevent these actions.
• Tax return preparation: If you have unfiled tax returns, a tax relief service can help ensure accuracy and compliance to minimize your liability.

The bottom line

Understanding how far back the IRS can collect taxes is essential for anyone with tax problems. While the 10-year statute of limitations provides some protection, exceptions and extensions can significantly prolong collection periods. For unfiled returns or cases involving fraud, there is no time limit at all.

Your best approach if you’re in this situation depends on your specific situation. If you’ve received notices about old tax debts, don’t ignore them — addressing tax issues proactively almost always leads to better outcomes. The IRS generally responds more favorably to taxpayers who voluntarily come forward rather than those who wait until collection actions begin. So, whether you choose to handle matters yourself or seek professional help, taking action sooner rather than later will give you more options for resolving your tax situation.