QUESTION
Do I need to contact IRS to end 10yr statute of limitations
Asked on Jul 03rd, 2020 on Taxation - Pennsylvania
More details to this question:
Next month in August I am supposed to be 10 years making instalment payments for 2009 tax bill 54k. I was told by customer service that it should run out in august. I still have payment to make this month in july. Will they write me or should I contact them?
1 ANSWER
Hi. The time for collection will run out on itself; so they will stop collecting even on an installment agreement. It may take some time to process in their system, especially right now because of COVID. If you do not make a payment in July, you will be considered in default. However, they usually send an Intent to Terminate Installment Agreement letter, which will become moot when the time to collect runs out.
Even though I also counsel individuals to make their required installment payments, you could save money by not making the July payment.
If you keep getting notices about your debt even after collection ends, I would contact the IRS to see if maybe the collection statute was tolled for some prior dealings.
I hope this helps.
DISCLAIMER: THIS IS NOT MEANT FOR LEGAL ADVICE.
Answered on Jul 06th, 2020 at 8:52 AM