Collection Status Expiration Date

A Collection Status Expiration Date (CSED) is generally calculated based on the tax assessment date

Do You Know Your Collection Statute Expiration Date (CSED)?

The amount of time the IRS has to collect taxes is limited by statute.

  • The IRS generally has 10 years from the date of the tax assessment to work the case and collect payment.
  • This 10-year period is identified by the Collection Statute Expiration Date (CSED), which ends the Government’s right to pursue collection of the liability.
  • The IRS calculates the CSED from the assessment date or the return due date, whichever is later.

It is possible that one taxpayer’s account for one tax year could have multiple CSEDs.

For example, if a taxpayer timely filed a Tax Year 2003 return that contained an April 15, 2004 tax assessment, the CSED would be April 15, 2014. If the same taxpayer later filed an amended Tax Year 2003 return on June 26, 2006 that increased the tax, the CSED for that additional assessment would be June 26, 2016.

In some instances, the CSED is recalculated to suspend or extend the CSED.

For example, the CSED is recalculated when the taxpayer files bankruptcy, submits an application for an offer in compromise, or agrees to extend the CSED for certain installment agreements.

CSED recalculations can be very complex and difficult to accurately determine because multiple activities requiring CSED recalculations may occur on a taxpayer’s account.

As the complexity and difficulty of CSED recalculations increase, the risk of IRS records reflecting inaccurate or erroneous CSEDs also increases.

Miscalculations of CSEDs can potentially violate taxpayers’ rights and negatively affect the IRS’s ability to protect and collect revenue.

Specifically, an erroneous CSED on IRS computer systems which extends beyond the statute of limitations may result in continued collection activity when the IRS was legally required to cease collection efforts.

A National Taxpayer Advocate Annual Report to Congress reported erroneous and miscalculated CSEDs as one of “The Most Serious Problems Encountered by Taxpayers.”

The certified tax resolution specialists at Tax Help Advisors, LLC will determine your correct CSED as part your tax resolution process.

To learn more about your CSED and the tax resolution services provided by Tax Help Advisors, LLC, contact us or call today at (704) 912-4002.

The certified tax resolution specialists at Tax Help Advisors, LLC will determine your correct CSED as part your tax resolution process.