State Taxes

[DeeWill]

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Does anyone know what the statue of limitation is for a state to collect on back taxes? I got a letter from a collection agency today and it listed the dept. of revenue for a particular state as the original creditor.  I contacted that state who informed me that I owed back taxes from 2000 and 2001 which I wasn't aware of.  Now the collection agency  wants a whopping $3287 for a debt that was originally about $900 but since I didn't know it was out the penalties and interest have grown.  Just checking to see if they can still legally collect on the one from 2000 while I wait for them to furnish proof that it is actually my taxes.

Thanks!

[llecs]

You would need to pour through the state's statutes to see how long the SOL is for 1) filing and 2) paying.

Even if out of SOL, the CA can collect forever.

[Shane1]

The statute of limitations in Colorado is 6 years from the date of assessment under §39-21-107(2) C.R.S. Unlike other forms of debt, taxes generally cannot continue to be collected following the expiration of the statute of limitations, if one exists, because they are collections statutes rather than just statutes for legal action.

[RobertEG]

You have two separate concerns running in tandem.

SOL may well have expired.  So legal action may not be the issue.  But credit reporting is separte mattter,

The expiration of tax liens from your CR is specfied as being, under FCRA  605(a)(3),  7 years from the date of payment of the lien.   Being uppaid, the 7-year period has yet to begin.