IRS Tax Debt

Do you have an IRS tax debt? If you do you may be asking whether or not you will ever be able to pay the debt off. Said another way, will this debt last forever? The answer is yes and no. An IRS tax debt, just like milk you buy from the grocery store, has an expiration date, which means at some point it will no longer be collectible, legally, by the IRS. While this is a good thing, the fact that you will not have to “pay forever” the IRS still has other options at their disposal.

It is entirely possible for a taxpayer to owe the IRS and let their collection expiration date expire and they are forever released from the tax debt. However, if the IRS believes the taxpayer has assets that at some point could be sold and the tax paid the IRS can have the tax debt reduced to a judgment against the taxpayer. A judgment is filed in the courthouse of the county in which the taxpayer resides and can be “renewed” every 10 years. Thus making the tax debt last forever.

If you have an IRS tax debt it is wise to have this analyzed by a tax professional to make the best determination as to what course of action would be best. The tax laws are complex and the options are many. A professional must be involved to handle these types of concerns. You should be able to find a professional tax resolution firm who provides a confidential tax consultation at no cost and who can help with whatever problem you may have.