Statute of Limitations for Tax Collection refers to the legally defined time period during which a tax authority, such as the IRS, can collect unpaid taxes from a taxpayer. This period typically begins after the tax return due date or the date the return was filed, whichever is later.
In the United States, the general statute of limitations for federal tax collection is ten years. This means that after this period, the IRS cannot initiate collection actions for unpaid taxes. There are exceptions that can extend or suspend this period, such as when a taxpayer files for bankruptcy or if the taxpayer is outside the U.S. for an extended period.
For example, if a taxpayer owed taxes for the 2010 tax year and did not pay, the IRS would have until 2020 to collect that debt, barring any exceptional circumstances that might pause or extend the statute.
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