How IRS Collection Tactics Change Once a Tax Debt Is Over 10 Years Old

If you owe money to the Internal Revenue Service (IRS), one of the first things you’ll want to know is how long the government has to collect. Taxpayers are often surprised to learn that the IRS does not have unlimited time to pursue a debt. Under federal law, the agency generally has ten years to collect unpaid taxes. However, the way the IRS approaches your case and the options available can shift dramatically as the collection deadline nears.

At Ronald Cutler, P.A., our experienced Florida tax-IRS attorney helps taxpayers understand the timeline of IRS collections and the strategies for protecting themselves as debts age.

IRS 10-Year Statute of Limitations on Collections

Under the U.S. Code, the IRS has ten years from the date it assesses a tax liability to collect that debt, known as the Collection Statute Expiration Date (CSED). Once that window closes, the IRS can no longer enforce collection.

However, the IRS often uses aggressive tactics during those ten years:

• Liens filed against your property, which cloud title and harm your credit.
• Bank levies or wage garnishments to seize funds directly.
• Frequent notices demanding payment and threatening enforcement actions.
• Attempts to negotiate payment plans to secure at least partial repayment.

According to the IRS, taxpayers sometimes unknowingly extend the 10-year period, for example, by filing bankruptcy, requesting an installment agreement, or living outside the U.S. during collections. These pauses can give the IRS more time to pursue you, which makes professional tax guidance crucial.

What Happens as the IRS Nears the 10-Year Deadline

As the statute of limitations approaches, the IRS often intensifies its efforts. The agency wants to secure payment before time runs out, so it may become more aggressive in enforcing liens and levies. At the same time, taxpayers may have additional leverage if they can show financial hardship or negotiate alternatives.

Ways to respond as the ten-year period winds down include:

• Confirm the exact CSED date. An experienced tax attorney can request account transcripts to verify when the clock runs out.
• Challenge improper extensions. Sometimes the IRS claims the Deadline was paused when it was not.
• Negotiate an Offer in Compromise. If you cannot afford to pay in full, the IRS may settle for less.
• Explore Currently Not Collectible (CNC) status. This pauses collection activity if paying would create severe hardship.

Contact Our Florida Tax-IRS Attorney To Schedule A Consultation Today

If you have old tax debts hanging over your head, it is not too late to take control. While the IRS may be running out of time to collect, you can still face harsh enforcement actions.

At Ronald Cutler, P.A., we help Florida taxpayers understand their rights under the 10-year statute of limitations, challenge improper extensions, and negotiate fair solutions with the IRS.

With decades of experience as both a CPA and a former FBI Special Agent, our Florida tax-IRS attorney provides the professional representation you need to protect your financial future. Contact our office today to schedule a consultation.

Sources:

govinfo.gov/link/uscode/26/6502

irs.gov/irm/part5/irm_05-001-019#:~:text=Internal%20Revenue%20Code%20(IRC)%206502,pursue%20collection%20of%20a%20liability.