| There is a statute of limitation on tax debts. According | | | | lien. The request is given by using the 'Offer in |
| to the law the amount of money that you owe to the | | | | Compromise' (OIC) feature of the IRS. But it takes |
| IRS can be collected only within a period of 10 years | | | | about one year to arrive at a decision for the request. |
| from the original date of the assessment. Once the | | | | Also, it is advised to not use this method as a stalling |
| period is over, the tax debts will be removed | | | | tactic because the IRS can prosecute individuals that |
| automatically as a result of which you will become | | | | do this. So, it would be better if you work closely with |
| free from your IRS problem. Some people think that | | | | the IRS so that such harsh measures by IRS can be |
| they can save money by not paying IRS for a certain | | | | avoided. You cannot be sure that your OIC application |
| period in these 10 years. But that is not true. IRS has | | | | will be accepted. If IRS denies it then the statute of |
| got enough powers so it will use the necessary | | | | limitations period continues. So, now the total period |
| measures to collect the payment from you. They | | | | becomes approximately 11 years. |
| know how to collect money from a person. In certain | | | | Statute of limitations period will be increased if you file |
| cases they also place a tax lien on the person's | | | | a bankruptcy. IRS cannot obtain any information of the |
| assets and credit. This lien will remain for 10 years. You | | | | debtor until a decision is made on the request. Thus, |
| won't be able to take any loan due to the presence of | | | | the limitation period increases. If you are not capable of |
| tax lien. So, the debtor will try to make the payment as | | | | handling the IRS problems in case of tax debt then you |
| early as possible to release the lien. | | | | can use the service of a tax relief professional. He will |
| You can give a request to the IRS to remove the tax | | | | help you to get rid of the troubles. |