Is there a Statute of Limitations on unpaid taxes?
There is a ten-year Statute of Limitations period on collections. If that Statute of Limitations is never extended, then it expires in ten years. If the IRS has not collected from you or has not received a signed extension of the Statute from you, then, at the end of ten years, you no longer owe the IRS any taxes. If you had a lien on your home, it will be discharged. The IRS therefore, likes to get extensions, and, there are certain things that extend the Statute of Limitations. Filing an Offer in Compromise, for example, extends the Statute of Limitations. As a rule of thumb, whenever collections are placed into abeyance, the Statute of Limitations is extended.
