Wednesday, March 25, 2009

What Equals The Removal Of Tax Debt?

So what equals the removal of tax debt ? Its called CSED dates (Collection Statutory Expiration Dates). What exactly is a CSED date, and what does this mean for taxpayers have tax debt? D you know that the Internal Revenue Service, can't collect on your debt forever? This is true, the IRS only has ten years to collect on your debt. Technically, if you have tax debt stemming from the 2000 tax year, more than likely the CSED date has expired and the IRS can no longer collect this tax liability.

However, if you have undergone a Audit, Bankruptcy, or are currently in Offer In Compromise Examination review, then your CSED dates have been extended. Other than these examples, the IRS will cease collection on tax debt that has expired. There is a resolution called partial pay installment agreement, where the CSED dates play an important role on the total liability the client would have paid for. In a partial pay installment agreement, the CSED will always run, leaving the taxpayer only paying a portion of the total tax liability owed. Keep in mind the IRS approves only a small portion of these every year, and a taxpayer should be ecstatic to have gotten this as a resolution. I've seen where reputable tax resolution firms were able to save taxpayers thousands of dollars by establishing partial pay installment agreements, and buying time for other CSED dates to expire.

If you have tax debt, and you want to know more about CSED dates and whether or not you would qualify for partial pay installment agreement, don't hesitate to contact a tax professional today, and get this tax debt behind you for good.

1 comment:

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