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Period of limitations for assessment of tax: 6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.
When the IRS sends your case to IRS Collection, it means the IRS has contacted you with notices and a tax bill, but you still haven't paid. The IRS may try to collect the money by taking your assets through liens and levies, or sometimes, the IRS will assign private contractors to collect tax debts.
As a general rule, there is a ten year statute of limitations on IRS collections. This means that the IRS can attempt to collect your unpaid taxes for up to ten years from the date they were assessed.
The IRS rarely forgives tax debts. Form 656 is the application for an \u201coffer in compromise\u201d to settle your tax liability for less than what you owe. Such deals are only given to people experiencing true financial hardship.
The IRS will first send Notice CP40 and Publication 4518PDF. These let you know that your overdue tax account was assigned to a private collection agency. The private collection agency then sends their initial contact letter. It has information on how to resolve your overdue taxes.
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As a general rule, there is a ten year statute of limitations on IRS collections. This means that the IRS can attempt to collect your unpaid taxes for up to ten years from the date they were assessed. Subject to some important exceptions, once the ten years are up, the IRS has to stop its collection efforts.
When the IRS sends your case to IRS Collection, it means the IRS has contacted you with notices and a tax bill, but you still haven't paid. The IRS may try to collect the money by taking your assets through liens and levies, or sometimes, the IRS will assign private contractors to collect tax debts.
In general, the Internal Revenue Service (IRS) has 10 years to collect unpaid tax debt. After that, the debt is wiped clean from its books and the IRS writes it off. This is called the 10 Year Statute of Limitations. It is not in the financial interest of the IRS to make this statute widely known.
The IRS works with private collection agencies that work with taxpayers who have overdue tax bills. These agencies help taxpayers settle their tax debts. This page contains frequently asked questions about the program.
The IRS has entered into contracts with four private collection agencies \u2014 Conserve, Pioneer, Performant, and CBE Group \u2014 and the first thing you need to know is that these third-party collectors won't be calling just anyone who owes taxes to the federal government.

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