The 10-Year Collection Statute is one of the most important pieces of legislation that you need to be aware of. Essentially, this law states that any debt which has not been collected within 10 years can no longer be collected. This statute does not apply if the debtor agrees to pay off the debt in installments or if they have done something illegal with respect to their financial obligation.
It’s important to know your rights under this statute because if you don’t, it could lead to years of harassment and hundreds of dollars in legal fees. That’s why it’s crucial to work with an experienced debt relief tax specialist if you’re struggling to pay off your debts.
Also commonly referred to as the Collection Statute Expiration Date (CSED), the 10-Year Collection Statute is a critical piece of legislation that helps protect consumers from unfair and predatory debt collection practices.
Usually, the IRS becomes more aggressive in its attempts to collect outstanding taxes at the end of the CSED, hoping that the taxpayer will pay as much as feasible before the deadline or consent to an extension. Having a tax specialist by your side can help you know if the IRS is acting within the bounds of the law, as well as help you negotiate a payment plan that works for your unique financial situation.
So, Why It Is So Important to be aware of the Collection Statute?
Generally, it is for your own good that you are aware of the Collection Statute because it will help you understand whether a debt collector’s actions are within the law. Below are more specific reasons:
- It protects you from predatory and unfair debt collection practices.
The Collection Statute protects you from unfair and predatory debt collection practices. It is important to note that the law prohibits most types of contact with consumers, including phone calls, letters, or personal visits. However, there are some exceptions when it comes to this law which includes notifying a taxpayer about an impending levy action against their property or wages; receiving a written agreement from the taxpayer to extend the Collection Statute; and notifying the taxpayer that the statute of limitations has expired.
- If you are being unfairly harassed by debt collectors, you may be able to take legal action.
In case you are being harassed by debt collectors, you may be able to take legal action. This is especially important if the debt collector is violating any of the provisions in the Collection Statute. For example, a debt collector cannot call you repeatedly or at an unreasonable time; they cannot use profanity or threaten to arrest you, and they cannot disclose your financial information to third-party companies. If you believe that a debt collector is violating any of these provisions, you should speak with an attorney immediately.
- It’s easier to negotiate a payment plan with the IRS that works for you when you know the Collection Statute Expiration Date.
When you owe the IRS tax debt and cannot pay it in full, chances are that the IRS may be interested in negotiating a payment plan with you. However, any plans which they offer to you will most likely work out better for you than them. This is where contacting an experienced tax relief specialist can help as they know if this type of arrangement is feasible and how the Collection Statute expiration date fits into your overall tax strategy.
Can the Collection Statute Expiration Date be extended by the IRS?
The Collection Statute may be extended by the IRS if you have done something illegal with respect to your financial obligation. When the date is extended in favor of the IRS, you can no longer take legal action against the agency.
The 10-Year Collection Statute is usually extended if you file bankruptcy to prevent the tax collector from coming after you for any debts that are discharged in your personal bankruptcy filing, or if you are delinquent in filing your tax returns.
What to do if the 10-Year Collection Statute is extended by the IRS
If the Collection Statute is extended by the IRS, this usually happens because you have not been cooperating with their attempts to collect on your outstanding tax debt. In this case, they will take legal actions against you in order to force payment. This may include filing a Notice of Federal Tax Lien or issuing a levy action against your property or wages.
It makes sense to contact an experienced tax relief professional who can help you negotiate with the IRS so that your payment plan works for you and does not punish you even further financially. They will know how this type of arrangement is feasible, as well as when the Collection Statute expires in order to ensure that it doesn’t affect any legal actions you may want to take in the future.
Get Compliant and Get Tax Relief
The Collection Statute is an important law that helps protect taxpayers from predatory and unfair debt collection practices by the IRS. If you are being unfairly harassed by a debt collector, you may be able to take legal action. Additionally, if you owe the IRS tax debt and cannot pay it in full, they may be interested in negotiating a payment plan with you.
However, any plans which they offer to you will most likely work better for you than them if your tax relief specialist is experienced and knowledgeable about the Collection Statute expiration date and how it fits into your overall tax strategy.
Morris and Associates are experts when it comes to helping individuals and companies find tax relief in Georgia but can help no matter where you live or whatever tax questions you have. Contact us to help with your taxes and possibly even reduce the amount that you owe.
