Statute of limitations of CO tax debt: what is it and should I waive it?

Question

I'm trying to set up a payment plan for my 2003 CO state taxes, and in order to set the payment plan up, I have to sign a paper that says: "I agree to the terms of this AGREEMENT TO PAY and by doing so, I waive the statute of limitations for the collection of this debt."

What does that mean? What is the statute of limitations? It doesn't sound like I should sign. Please give me info!

Answer 1

Doesn't sound like your going Thur with the IRS, some private collection company..don't sign, and every state has a limit on how long they can pursue a debt, (not IRS debt), the irs will work out payments for you, go on the computer and search "Statute of Limitations" and you'll get a website that shows the yearly limits of each state..becarful what you sign..

Answer 2

From the DOR website:

"The statute of limitations for collecting an income tax (or wage withholding) balance due is six years from the date of the final determination or assessment."

They only have 6 years to collect the taxes. They are supposed to stop collecting if you go beyond this point. This agreement allows them to collect beyond 6 years. On the flip side, they may not accept the payment plan unless you agree to wave the statute. Then they could start other collection activites such as wage garnishments that would leave you little to live on.