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Question for the Money Doctors

Question submitted on Dec 16, 2012.

Question

I have a tax lien on my condo relating to 1999 and 2001. I did not file any returns and the IRS filed substitute returns in 2003. The lien was placed in 2005. Since the IRS has ten years to collect debt, does this mean that they cannot collect the debt after 2013?

Answer

The ten year statute of limitations on collections does not begin to run until you voluntarily file your tax returns. The IRS is able to enforce and collect the substitute return assessment forever, which is why it is always a good idea to voluntarily file your income tax returns.


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