In this article, you can discover:
- The IRS “Fresh-Start” initiative
- Timeline for tax collection on a tax debt.
The IRS’s Fresh Start initiative started in the 1990s and changed the way the IRS collects taxes. Before, the IRS would often take money from taxpayers without warning. This would often leave people in difficult financial situations. The film The Pursuit of Happyness starring Will Smith illustrates this point well – the protagonist at one point believes he is reaching a seemingly stable moment, but by the afternoon, he has no money because the IRS took it all.
The IRS has become much more user-friendly in recent years, thanks to the Fresh Start Initiative. They have implemented notice systems to give people the opportunity to work out the situation. As a result, the IRS is not as aggressive with its enforcement action. They are much more willing to work with people at every stage.
However, if you’re in debt to the IRS, don’t expect them to just let it slide. There are mechanisms in place that you can use to work with them, but you need to be knowledgeable about how they work. The best way to deal with your tax debt is to work with a tax attorney who knows what they’re doing.
How Long Can The IRS Collect On A Tax Debt?
The statute of limitations for filing a return is based on the date the return is filed. If you do not file a return, the IRS statute of limitations does not begin and can be up to 3 years after the due date to process your return. This could result in you owing far more than you originally thought due to interest and penalties. So, it’s important to make sure you file your return on time.
Three years is the typical amount of time the IRS has to assess a tax return. However, this only applies if the case remains in stage one. If it goes into collections, the IRS may continue trying to collect the debt. The common belief that the IRS takes forever to collect is inaccurate. The agency can file liens that do not expire after three years.
With the guidance of a skilled attorney for Tax Resolution Law, you can have the peace of mind that comes with knowing that we’ll make it look easy.
For more information on Tax Resolution Law in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (305) 606-6139 | (305) 285-3042 today.