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I had not filed a tax return since 1998 and the IRS hit me last year, and as a result I entered into a payment plan with the IRS in mid 08. They went back 10 years on me to 1998 which happened to be the largest amount I owed in total. They threw out three years they actually owed me because we can only go back three years as citizens (that's a whole nuther rant!). Anyway, my question is, that since they apply my monthly payment to the oldest amount owed, can I now drop the remaining 98 amount off my total in order to bring my payment down? Any insight would be greatly appreciated.


Can you clarify?

Are you asking if since we're now in 2009 the 1998 amount should be dropped? If so, then the answer is no. The statute of limitations is 10 years from date of last activity - that means if they did the initial discovery in 2008 (which they apparently did since you entered into your agreement in 08) then the clock has restarted for 1998 and all the other years they did discovery on. So the 1998 discovery will now be active until at least 2018 assuming there is no new activity

Sorry if this doesn't answer your question.

Sub: #1 posted on Wed, 03/18/2009 - 13:16

nyteri nyteri

(Posts: 24 | Credits: )

There is no SOL on tax evasion.

Sub: #2 posted on Wed, 03/18/2009 - 13:49

Moderators Cum Industry Expert
(Posts: 4671 | Credits: )

True. I misstated. The AUDIT period is 10 years - but since they've already found the problem and they know there is issue they can enforce all taxes owed.

Sub: #3 posted on Thu, 03/19/2009 - 06:57

nyteri nyteri

(Posts: 24 | Credits: )

Lots of misinformation here.

1. The SOL doesn't start until you file the return. IRS is collecting on a Service Filed Return (SFR) which gives you the highest possible tax liability. get the returns filed and you would be surprised how much the amount owed can come down.

2. The AUDIT SOL is 3 years from the later of the due date or the filing date of the return, not ten. The SOL for COLLECTION is 10 years from assessment, but only on an actually filed return. SFR's don't count (see #1 above). payments do not extend this SOL, so even if you make a payment in year 9, day 364. the SOL expires the next day.

3. NASCAR - there is no way nonfiling can be tax evasion because one of the elements of the crime of tax evasion is a statement that is made to impede the collection of the correct amount of tax. Nonfiling is NOT a statement - it is silence, and silence cannot be construed as evasion.

4. The 3 year SOL for payment of a tax liability is Statutory and it is enforced to encourage prompt filing of tax returns. After all, whose fault is it that you didn't even file a return to get the refunds? IRS fault? No, the taxpayer's.

Sub: #4 posted on Sat, 03/21/2009 - 06:58

Flyingifr Flyingifr

(Posts: 56 | Credits: )

Glad to see an Enrolled Agent here Flyingifr. Thanks for the correction. It's been about 18 years since Tax Acct. Going to have to come see you at your site. I have a CA to sue!

Sub: #5 posted on Sat, 03/21/2009 - 07:03

Moderators Cum Industry Expert
(Posts: 4671 | Credits: )

I pop in occasionally. As an EA I figure this is a board I can have some serious impact on.

NASCAR, you are always welcome at Debtorboards.

Sub: #6 posted on Sat, 03/21/2009 - 07:07

Flyingifr Flyingifr

(Posts: 56 | Credits: )

flyingifr u say the SOL on an audit is 3 years, but that is for a random audit only. If they suspect fraud, there is no SOL.

Sub: #7 posted on Sat, 03/21/2009 - 08:02

freedebtadvice freedebtadvice

(Posts: 13 | Credits: )

You are correct there is no SOL for an audit based on a Fraud assertion, but since Tax Fraud is a crime there has to be a showing of Probable Cause, not simply someone in the IRS saying "I suspect fraud, Get me all your records from 20 years ago".

Sub: #8 posted on Sat, 03/21/2009 - 09:21


what if the person has been deceased for 10 years and the irs is now coming after them for back taxes from 1977

Sub: #9 posted on Thu, 01/21/2010 - 18:32


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