Hello I live in california... I owe $4800 in back taxes from 1997 ... today i noticed my bank account was levied for $1800 which means i still owe the IRS $3000 since we are in the year 2007 does it mean i will still owe the $3000 since I think there is a 10 year statue of limitaions?.. should i start i monthly payment plan or hold out for the limitation...thanks so much
2007-02-23 11:01:18 · 6 answers · asked by m k 2 in Business & Finance ➔ Taxes ➔ United States
It's best you get on some sort of monthly payment plan. The IRS is actually pretty good about letting people in your situation get on plans like this and they are more predictable then having them come in and start taking cash or assets from you. I'm not so sure about this 10 year statute of limitations.
Do you owe Federal taxes or California taxes? It's also likely that if you owe $4800 in back taxes to the Federal Government you also owe the State of California some tax money. States might be more vigilent about collecting.
2007-02-23 11:06:31 · answer #1 · answered by Brad S 2 · 0⤊ 2⤋
That depends on when you were assessed the balance you owe. If this is balance is owed due to an underreporting of income that was found by the IRS after you filed your return and you were notified of the balance by the IRS (which usually happens a year or so after you filed your return) the Statute Of Limitations runs from the time that you were assessed the additional tax. ( example, IF you didn't file 97 until 2000, that is when the clock starts)
If this is from a balance that you owed when you filed in 98 and you were aware of the balance at the time 10 yrs is the norm, but the IRS has the right to extend any levy or lien beyond that time frame.
From the bit of information it sounds like this balance was due to the first example, if so then you do need to set up payment arrangements before the IRS garnishes your wages or levy's your bank account
2007-02-23 11:11:57 · answer #2 · answered by Anonymous · 1⤊ 1⤋
The IRS would have put a lien on your account for the entire debt and will not take it off until the debt is paid, you enter an agreement with them, or the statue of limitations runs out on the most recent debt. You should know that the IRS gets more aggressive once debts become close to their limitation date. If you haven't heard anything from the IRS in years, you may start getting letters from them soon. Here's a great blog that has tax advice and facts you should read.
2016-05-24 03:45:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
There is a 10 year limitation in which the IRS can collect any tax due. If they have not collected the tax within ten years from the first due date, they cannot collect any further money but they can audit and annoy you for the rest of your life.
There are many sites on the web you can see this show-up.
2007-02-23 11:09:35 · answer #4 · answered by KingGeorge 5 · 0⤊ 2⤋
The statute of limitations applies to tax returns. Once they assess back taxes and penalties, you owe until you (or your estate) pays them.
I suggest you go ahead and set up payments before they decide to garnish your wages. The sooner the better because interest and penalties don't stop accumulating.
2007-02-23 11:11:46 · answer #5 · answered by Anonymous · 1⤊ 1⤋
I don't know about any statue of limitations or not..... Be glad that they don't add interest in there as well. I would recommend that you get a loan and pay it off in full if you can. Get it over with. Best of luck to you.
2007-02-23 11:10:22 · answer #6 · answered by cajunrescuemedic 6 · 0⤊ 1⤋