I'm fairly certain that there are no statue of limitations when it comes to the IRS collecting money owed to them. You could be taking a nap in heaven and you'd get a tap on your shoulder from the IRS talking about the money you owe them.
@ccpat wrote:I have an IRS 2007 bill that I went into negotions with. Original bill was around 22,000. It's now down to $8,000. At some point, I renegotiated payment terms after I got behind and now I'm at a $1,000 per month payment. Februrary 20th was the end of the terms according to IRS (statue of limitations). I didn't pay in April or May because I thought they wouldn't demand payment. I got a letter that I owed $2,000 for back pay and if I don't pay by July, they'll put a lien on my account and possibly garnish wages.
At some point there was a lien on my credit report and it was removed.
Is this a standard letter or can they do this after the statue of limitations. I guess the IRS can do it...but will they?
If so, I'm just going to transfer it to a credit card and be done with it.
If you want to know the answer, you should be asking a tax professional, not us.
But whether they can or can't, I would advise you to pay it with a credit card "and be done with it".
The IRS does lots of things it "can't do".
**You should contact a professional / attorney for your specific situation.**
But, generally, the 10 year collection statute may be extended for up to an additional 6 years once you enter into an installment payment agreement. It's likely you signed a waiver agreeing to such. The initial 10 year statute is also suspended during periods of negotiation.. so that further extends the date in which it's set to end.
So.. yes, you should probably pay the remaining 2k and be done with it - and / or consult a professional / attorney before making a decision.
But, generally, the 10 year collection statute may be extended for up to an additional 6 years once you enter into an installment payment agreement. It's likely you signed a waiver agreeing to such. The initial 10 year statute is also suspended during periods of negotiation.. so that further extends the date in which it's set to end.
So.. yes, you should probably pay the remaining 2k and be done with it - and / or consult a professional / attorney before making a decision.
@ccpat wrote:I have an IRS 2007 bill that I went into negotions with. Original bill was around 22,000. It's now down to $8,000. At some point, I renegotiated payment terms after I got behind and now I'm at a $1,000 per month payment. Februrary 20th was the end of the terms according to IRS (statue of limitations). I didn't pay in April or May because I thought they wouldn't demand payment. I got a letter that I owed $2,000 for back pay and if I don't pay by July, they'll put a lien on my account and possibly garnish wages.
At some point there was a lien on my credit report and it was removed.
Is this a standard letter or can they do this after the statue of limitations. I guess the IRS can do it...but will they?
If so, I'm just going to transfer it to a credit card and be done with it.
I am only speaking from experience. The limitation was only how long it would remain on your credit report. Time does not pay the bill. Just as with any other creditor.
When you made the payment plan with them, you started a new 10 year clock where your credit report is concerned. I went through this with both Federal and State tax liens. Mine were from the tax year 1993. I satisfied the Feds in 1998 and the paid lien remained until 2008. I ignored the state and it droped off sometime in the mid 2000s. They did not go away, however. When I made an offer in compromise with the state, boom, it was back on my report. It finally dropped off in 2017.
Laws may have changed since, but my money is on the government getting theirs. I suggset you pay if it will prevent it from showing for another x years.
OP was referring to the Statute of Limitations for IRS debt collection - not bureau reporting of liens.
The collection SOL is, generally, 10 years from the date of assessment:
https://www.irs.gov/irm/part5/irm_05-001-019
@mikesonthemend wrote:.I am only speaking from experience. The limitation was only how long it would remain on your credit report. Time does not pay the bill. Just as with any other creditor.
When you made the payment plan with them, you started a new 10 year clock where your credit report is concerned. I went through this with both Federal and State tax liens. Mine were from the tax year 1993. I satisfied the Feds in 1998 and the paid lien remained until 2008. I ignored the state and it droped off sometime in the mid 2000s. They did not go away, however. When I made an offer in compromise with the state, boom, it was back on my report. It finally dropped off in 2017.
Laws may have changed since, but my money is on the government getting theirs. I suggset you pay if it will prevent it from showing for another x years.
@thornback wrote:
OP was referring to the Statute of Limitations for IRS debt collection - not bureau reporting of liens.
The collection SOL is, generally, 10 years from the date of assessment:
https://www.irs.gov/irm/part5/irm_05-001-019
Unless you make a new agreement with them.
Which i mentioned in my initial response to the OP. I was just clarifying that OP was concerned with collection activity, not so much lien reoprting, so to avoid confusion of the two topics.
@mikesonthemend wrote:Unless you make a new agreement with them.