Is there a statute of limitation for IRS to collect tax liability from a payroll audit?


#1

Is there a statute of limitation for IRS to collect tax liability coming from payroll taxes once assessed by irs audit?
Also how can one best check to see if the tax liability is still there or not?


#2

Good morning Ricky!

Collection Statute Expiration (CSE) is outlined in IRM 5.1.19, Field Collection Procedures, Collection Statute Expiration

Each tax assessment has a Collection Statute Expiration Date (CSED). Internal Revenue Code section 6502 provides that the length of the period for collection after assessment of a tax liability is 10 years.

The collection statute expiration ends the government’s right to pursue collection of a liability.

One of the best ways “to see if the liability is out still out there or not” is to use Canopy’s 2-Minute Transcripts Tool.

This is a free tool provides easy-to-read, downloadable transcript reports that allow you to quickly compare data year-over-year, view CSED calculations, and more.

Additionally, you can pull your client’s transcripts in as little as two minutes, complete with hundreds of calculations so that you can see the full picture of your client’s tax history.

I hope that this helps! If you have any questions or need additional information, please let me know!

Thanks!
Keith
TheCPATaxProblemSolver

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#3

The statute is 10 years to collect (CSED) from date of Assessment (ASED). The date of Assessment, on additional taxes, due to audit, is the date in which the audit is finalized.