COLLECTION STATUTE EXPIRATION DATES (CSEDs)
“The IRS cannot collect on a tax bill indefinitely. The Collection Statute Expiration Dates, or CSEDs, is the legal timeframe that the IRS has to collect on a tax debt owed. Each period of liability has its own CSED. The first step you should take is to make sure that you won’t owe any more taxes going forward by increasing your withholdings and deposits so that your tax debts quickly start to become a thing of the past."
-Greg Daer
Generally, with some exceptions, the IRS has 10 years from the date that the tax is assessed to collect on a period of tax liability.
Certain actions can suspend/freeze the CSEDs, such as filing for bankruptcy, filing an Appeal, or filing an Offer in Compromise.
One of the first things we look at when a new client signs up with us is their CSEDs — because there is a lot of strategy to consider with a resolution.