How does the Collection Statute Expiration Date (CSED) affect you?
Many people don’t know the IRS only has 10 years to collect a tax liability once the liability has been assessed. The IRS notes the Collection Statute Expiration Date (CSED) in your file for each year that a tax is assessed. Note I have underlined the word assessed because it is a key term. A tax is assessed once the return has been filed or if you fail to file, the IRS files a “Substitute For Return” (SFR). The IRS may also audit a year and if an additional balance is due, will issue an Audit Report and Letter of Determination. This will extend the CSED date. It is critical to know your CSED date, as it is the date upon which the IRS’ ability to collect that years’ debt expires.
So, how can you determine your CSED date? Definitely NOT by calling the IRS on the phone and asking them! If you call an agent at the IRS and ask, the only thing they are going to be interested in talking to you about is, where do you bank, where do you work, how much do you make… in other words the want to gather Collection Information.
So how can I get the CSED date without the hassle? The best way to obtain this information is through the disclosure office of the IRS via a Freedom of Information Act (FOIA) request. By law, the Disclosure Office can not disclose to any other Department of the IRS that you requested the information. This will provide the CSED date without disclosing all of your financial information.
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