Collection Statute Expiration
The IRS has 10 years to collect a tax debt. After that, it expires. Understanding your CSED can be the key to your resolution strategy.
Find Out When Your Debt Expires
Understanding the Collection Statute Expiration Date
Every IRS tax debt comes with an expiration date. Under Internal Revenue Code Section 6502, the IRS generally has 10 years from the date of assessment to collect a tax liability. Once that period expires, the debt is legally uncollectible. Here's what you need to know:
The 10-Year Clock
Starts on the date of assessment, not the filing deadline
The assessment date is when the IRS formally records the liability on your account — often weeks or months after you file your return
Assessment Date vs. Filing Date
These are not the same thing
If you filed your 2015 return on April 15, 2016, the IRS may not have assessed the tax until May or June 2016 — shifting the expiration date accordingly
Multiple Assessments
Each assessment has its own separate 10-year timer
Audit adjustments, amended returns, and substitute-for-return filings each create new assessment dates with independent expiration timelines
Tolling Events
Certain actions can pause or extend the clock
Offers in Compromise, bankruptcy filings, CDP hearings, and living abroad can all add time to the collection statute
Example: A taxpayer who filed their 2014 return on time may assume the debt expires in April 2025. But if the IRS assessed the tax in June 2015 and the taxpayer submitted an Offer in Compromise that was pending for 14 months, the actual CSED could be August 2026 — over a year later than expected.
Strategic Approaches to CSED
Your CSED timeline shapes your entire resolution strategy. Here are the approaches we use:
Wait for Expiration
If your CSED is approaching and you can manage IRS collection activity in the meantime, letting the clock run out can eliminate your debt entirely at no cost.
Best for: Taxpayers with CSEDs within 2-3 years and manageable collection pressure
Strategic Resolution
When your CSED is years away, pursuing an Offer in Compromise or Installment Agreement that accounts for the remaining collection window can minimize what you pay.
Best for: Taxpayers with distant CSEDs facing active IRS collection
CSED Defense
Protect your collection statute from being inadvertently extended. We help you avoid tolling events and make informed decisions that don't add years to your timeline.
Best for: All taxpayers with IRS debt — understanding tolling risks is essential
Our CSED Analysis Process
- 1
Transcript Analysis
We pull your IRS account transcripts and identify every assessment date, transaction code, and event that affects your collection statute.
- 2
CSED Calculation
We calculate the precise expiration date for each assessment, accounting for any tolling events that may have paused or extended the clock.
- 3
Strategy Development
Based on your CSED timeline, we build a resolution strategy — whether that's waiting for expiration, pursuing a settlement, or a combination approach.
- 4
Monitoring & Protection
We monitor your account to guard against tolling events and ensure the IRS doesn't take actions that could inadvertently extend your statute.
Frequently Asked Questions
I have a tax debt from before 2010. That's over 10 years ago, so shouldn't it be expired?
This is one of the most common misconceptions I encounter. The 10-year collection statute doesn't start from when your tax return was due or when you filed it — it starts from the date the IRS formally assessed the tax. The assessment date is often weeks or months after you file, and if the IRS made additional assessments through audits, adjustments, or substitute-for-return filings, each of those assessments starts its own separate 10-year clock. So a tax year from 2009 might have an original assessment in 2010 and an additional assessment from an audit in 2013, meaning part of that debt wouldn't expire until 2023. The only way to know your actual expiration dates is to obtain your IRS account transcripts and identify every assessment date. This is exactly the kind of analysis I do for clients, because getting it wrong can lead to costly mistakes.
What happens to the tax debt after it expires?
Once the Collection Statute Expiration Date passes, the IRS loses its legal authority to collect that debt. The balance is essentially eliminated — you no longer owe it, and the IRS cannot pursue levies, liens, garnishments, or any other collection action against you for that amount. The debt doesn't transfer anywhere or get sold to a collection agency. That said, historical records of the debt will still appear on your IRS account transcripts as a matter of record, but the financial obligation is gone. Any active liens related to the expired debt should be released, and if the IRS had been garnishing your wages or levying your bank accounts for that specific liability, those actions must stop. It's one of the most complete forms of tax debt relief available — the slate is genuinely wiped clean for that particular assessment.
Will the IRS treat the expired debt as taxable income?
No, and this is a critical distinction that many taxpayers worry about unnecessarily. When credit card companies or other lenders forgive debt, they issue a 1099-C and the forgiven amount becomes taxable income. Tax debt that expires through the Collection Statute Expiration Date works completely differently. The IRS does not treat expired tax debt as cancellation-of-debt income, and no 1099-C is issued. This means you receive complete relief without creating any additional tax liability. It's one of the significant advantages of CSED expiration compared to other resolution options like an Offer in Compromise, where the forgiven portion can sometimes have tax implications depending on the circumstances. When the statute expires, the debt simply ceases to exist from a collection standpoint.
What actions can extend or pause the CSED clock?
Several events can toll — meaning pause or extend — the 10-year collection statute, and this is where many taxpayers get tripped up. Submitting an Offer in Compromise tolls the CSED for the entire time the offer is pending, plus an additional 30 days after rejection. Filing for bankruptcy triggers an automatic stay that pauses the CSED for the duration of the bankruptcy proceedings plus six months. Requesting a Collection Due Process hearing tolls the statute while the hearing and any subsequent Tax Court petition are pending. Living outside the United States for six consecutive months or more can also toll the statute. Even signing certain installment agreement forms or requesting innocent spouse relief can add time to the clock. This is why it's essential to have a professional analyze your specific situation before taking any action — what seems like a smart move could inadvertently add years to your collection statute.
Can the IRS still aggressively collect if my CSED is approaching?
Absolutely, and in fact the IRS often becomes more aggressive as the CSED approaches. Revenue Officers are well aware of expiration dates, and they know that once the statute runs out, the government loses its ability to collect permanently. As a result, it's common for the IRS to escalate collection efforts in the final years before expiration — filing tax liens, issuing bank levies, garnishing wages, or even pursuing seizure of assets. The IRS views the approaching CSED as a now-or-never situation. This is why having professional representation during this critical window is so important. I help clients navigate this period strategically, ensuring we protect your rights and assets while the clock winds down, without inadvertently doing anything that would toll or extend the statute.
Should I file an Offer in Compromise or just wait for the CSED to expire?
This is one of the most important strategic decisions in tax resolution, and the answer depends entirely on your specific circumstances. If your CSED is several years away and the IRS is actively collecting — garnishing wages, levying bank accounts, or threatening asset seizure — waiting may not be practical, and an Offer in Compromise could provide immediate relief. However, if your CSED is approaching within the next two to three years and you can manage the IRS's collection activity in the meantime, waiting may save you significantly more money since expiration eliminates the debt entirely at no cost. The critical factor many people overlook is that submitting an OIC actually tolls the CSED, meaning you could be adding a year or more to the collection window if the offer is rejected. I always run a complete CSED analysis before recommending any resolution strategy, because understanding where you stand on the timeline fundamentally changes which approach makes the most financial sense.
How can I verify my Collection Statute Expiration Date?
Verifying your CSED requires obtaining and carefully analyzing your IRS account transcripts — specifically, your Record of Account transcripts for each tax year in question. These transcripts contain transaction codes that show every assessment date, any tolling events, and adjustments that affect the statute. However, reading IRS transcripts is not straightforward. The codes are technical, and the IRS doesn't plainly list your CSED anywhere on the transcript. You have to calculate it by identifying the original assessment date (typically transaction code 150), then accounting for any events that may have tolled or extended the statute. Even small errors in this calculation can lead to significantly wrong conclusions. I regularly perform CSED analyses for clients by pulling their transcripts through my Enrolled Agent access, mapping out every relevant transaction code, and calculating the precise expiration date for each assessment. This gives you a clear picture of exactly where you stand and allows us to build a strategy around your actual timeline.
Related Tax Relief Services
CSED analysis often works alongside other resolution strategies. These services may also apply:
Currently Not Collectible
If you can't afford to pay while waiting for your CSED, CNC status can pause IRS collection activity and let the clock keep running.
Offer in Compromise
When the CSED is too far away to wait, an OIC can settle your debt for less — but timing matters since it tolls the statute.
Installment Agreements
A payment plan structured around your CSED timeline can minimize total payments while keeping the IRS from taking aggressive action.
Know When Your Tax Debt Expires
Your CSED could be closer than you think. Let us analyze your transcripts and build a strategy around your timeline.