Essential IRS Regulations You Should Know

Published by William T. Fricke at July 3, 2024

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At Fricke & Associates, we prioritize informing our clients about essential IRS regulations impacting their financial well-being. One critical regulation is the Collection Statute Expiration Date (CSED), which marks the end of the period when the IRS can collect taxes.

What is the Collection Statute Expiration Date (CSED)?

The CSED is typically ten years from the date of the tax assessment. This period applies to various tax assessments, including those from voluntarily filed returns, amended returns, Substitute for Return assessments made by the IRS, audit assessments, and civil penalty assessments. Once the CSED is reached, the IRS can no longer pursue collection actions on the assessed debt.

Events That Can Suspend or Extend the CSED:

Certain events can suspend or extend the CSED, delaying the expiration date and giving the IRS more time to collect the debt. Common events include:

Installment Agreements: If you request an Installment Agreement (IA), the CSED is suspended while the request is pending and for an additional 30 days if the request is rejected or the agreement is terminated (refer to Topic 202).

Bankruptcy: Filing for bankruptcy suspends the CSED during the bankruptcy proceedings and extends it by six months after the conclusion (refer to Publication 908).

Offer in Compromise (OIC): Submitting an OIC suspends the CSED from the date the offer is pending until it is accepted, returned, withdrawn, or rejected. If rejected, the CSED is suspended for 30 days and during any appeal period (refer to Topic 204).

Collection Due Process (CDP) Hearings: Requesting a CDP hearing suspends the CSED from the date the request is received until the final determination, including any court appeals (refer to Publication 1660).

Innocent Spouse Claims: Filing an Innocent Spouse claim suspends the CSED for the requesting spouse from the filing date until the claim is resolved, plus an additional 60 days.

Professional Assistance at Fricke & Associates:

Navigating the complexities of IRS regulations can be challenging. At Fricke & Associates, our experienced professionals are well-versed in CSED regulations and can provide the guidance you need to ensure compliance and avoid costly penalties. We are committed to helping our clients manage their tax obligations effectively and maintain peace of mind. Please do not hesitate to contact us if you have any questions or need assistance with tax-related matters. Our team is here for you!

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