Is an IRS debt uncollectible after the lien expires?

[masscredit]

One of my tax liens recently expired. It reached the 10 year mark last month. They then had 30 days to refile.  That day past earlier this week. The IRS sends out yearly reminders. I received mine today. The total with penalities and interest is just over $22K (I thought it was $20K).  I guess they can no longer file a lien for it.  Is this considered uncollectible, done and behind me now?

[Effielin]

The IRS has 10 years to collect past due taxes. If your lien has expired I would imagine you are in the clear.

[spiritcraft1]

I had one filed on me in 1997, it expired 10 years later and I then had it removed from my CR...  gone forever.  I think it was just a matter of sending a this is expired, please remove letter but don't go by that.  You should get a nice boost.

In my case, it was not even mine but no matter what I did with the IRS, I got nowhere... prior to expiration that is.  Good luck

[masscredit]

I have 3 liens (now 2). They stopped reporting on my CRs a couple of years ago. That was a good thing for my scores. One credit union (DCU) denied for a personal loan because of the liens being on my reports. The other two are small ($1800 and $525). I can manage those if I want to try to pay them back. The $1800 will age off next September and the small one has two years.  That big one was a huge weight hanging over me so I'm relieved that it's gone. I guess I'm very surprised they let a large amount go like that.

Some info that I found while researching this - 

Length of Time IRS Debt can be Collected

There are several statues of limitations when it comes to how long the IRS has to collect tax debt from you.  The first statute of limitations you have to worry about is the time the IRS has to go back and examine (or audit) your income tax return.  The IRS has three years from when your tax is assessed to audit your return.  That means, if you filed your 2008 tax returns on time, before April 15, 2009, the IRS will assess your taxes on April 15, 2009 and they have until April 15, 2012 to audit that return.  If they do not audit your 2008 return by that time then you don’t have to worry about them coming after you for that period.

The second, and probably the most important statute of limitations to you, is how long the IRS has to collect the tax from you.  The IRS has 10 years to collect your income taxes.  If they do not collect the income taxes from you within ten years from the date your taxes are assessed, then your tax debt – no matter how much – will be forgiven.  The key to this statute of limitations, however, is when your taxes are assessed.  Your taxes are assessed shortly after your tax return is filed.  If you file before April 15 each year, your taxes will be assessed on April 15 since that is the due date.  If you file your income tax returns late, however, your date of assessment will be after you file the return.

The clock will start to run on how long the IRS has to collect that tax as soon as the tax is assessed.  So approximately 10 years after you file your income tax return your IRS tax debt will be discharged.

While this sounds great, especially if it has been 9.5 years since you filed your income tax returns that you owe for, there are some things that can lengthen your statute of limitations to give the IRS more time to collect from you:

1. If you filed a fraudulent return.  The IRS can come after you from now until eternity if you have filed a fraudulent return.  Not only do you have to worry about owing the IRS money for your tax debt in this situation, but you may have to worry about some jail time as well.  Do not do this!
2. Filing an Offer in Compromise, Bankruptcy, or Collection Due Process Hearing Request: Any time collections are stopped for one of these reasons the statute of limitations for collection of your income tax debt is also paused.  So if it takes 9 months for your offer in compromise to be considered and denied, then your ten years will have another 9 months added on to the end.  This is also true when you have filed for bankruptcy or for a collection due process request with the IRS.

So, to wrap up this post, I want to give you a quick tip for success with your tax problems.  Always file your income tax returns on time.  Not only will you reduce the penalties that you might rack up if you owe the IRS more than you can afford to pay, but you can also get the clock started on your collection statute of limitations.