If I make a payment agreement with the IRS does the 10 yr statute for collections change?

Question

It's coming up on ten years since the tax liability finalized. I don't have an agreement with them yet and would like to know more about the law first..

Answer 1

Once a tax liability has been established by the IRS, there is no statute of limitations. The statute of limitations is only for past liabilities that have not been investigated, or substantiated.

Answer 2

The IRS won't make an agreement unless you can show how you will pay the amount due within the statute date.  

Answer 3

YOU ARE SPEAKING OF A STATUTE FOR COLLECTIONS, THE IRS IS A LIEN. THERE IS NO STATUTE WITH THE IRS VS A 20 YEAR LIEN STATUTE WITH ANYONE ELSE, ALSO THE STATUTES ARE FOR 5 YEARS ON A COLLECTION, 10 YEARS ON A JUDGMENT (IF IT HAS NOT BEEN EXTENDED THEN A MAX OF 16 YEARS) AND 20 YEARS ON A LIEN AFTER THE LAST DATE OF ACTIVITY SO EVERY PAYMENT YOU MAKE IS ACTIVITY

Answer 4

The statute of limitations for collection of federal taxes is 10 years from the date of assessment--this is the date on the first bill you receive.  Making payments on the liability does not change this.  The statute of limitations will be extended if you file bankruptcy, an offer in compromise, request a collection due process hearing or voluntarily sign a waiver.  "Coming up on ten years since the tax liability finalized" does not really explain your situation.  

Answer 5

You need to find a CPA who has the designation "EA". This is a higher designation than a CPA and they are authorized to argue cases in front of the IRS.

The 10 year statute has alot of strings attached to it.  I have posted an informational link that I think explains it very well in plain English.