The IRS normally has ten years to collect tax once it has been properly assessed. After that, they have no ability to collect the tax, right? Not so fast Gonzales. Is there a time when IRS can collect after the 10 year CSED (Collection Statute Expiration Date) has passed?
Assuming the taxpayer has not entered into an agreement to extend the statute on collection and that no actions have been taken that would extend it – like an Offer in Compromise or bankruptcy filing – they should be safe, right?
Generally speaking that would be so and the expiration of the ten years would cause the tax to become uncollectible. However, the IRS does have another ace up their sleeve should they elect to play it. Before the SOL lapses, they could file for a judgement based on the tax lien and continue collection efforts after the CSED has passed.