The IRS Collection Statute of Limitations (CSED)

Under IRC 6502, the IRS has 10 years from the assessment date to collect, by levy or court proceeding. Each tax year and each assessment has its own CSED. If you filed a return and owed tax, the assessment date is usually a few weeks after filing. Later assessments — from an audit or a substitute for return — start their own 10-year clocks.

The CSED is extended by the time certain events are pending:

• An Offer in Compromise is pending, plus 30 days after rejection (and during any appeal).
• A request for an installment agreement is pending, plus 30 days after rejection or termination.
• A Collection Due Process hearing is pending.
• A bankruptcy case is open, plus six months.
• You live outside the U.S. continuously for at least six months.
• A Taxpayer Assistance Order is in place.

A payment plan itself does not extend the CSED, although the IRS may ask for a waiver in limited situations.

Download your account transcript for each year from your IRS Online Account and find transaction code 150 (tax assessed). Add 10 years, then add any tolling periods shown by codes such as 480 (offer pending), 520 (bankruptcy or CDP) and 971 (installment agreement requests). Many professionals request the IRS's own CSED computation by calling with a power of attorney. See how to get your IRS transcripts.

Rarely. Penalties and interest keep growing, the IRS can levy wages and bank accounts and file liens throughout the period, and it can sue to reduce the debt to judgment, which extends collection. Waiting is risky unless you're truly unable to pay — in which case Currently Not Collectible status formally pauses collection while the statute keeps running.

The CSED shapes every program. A payment plan must fully pay the balance before the CSED (or the IRS considers a partial-payment plan). An Offer in Compromise is measured against what the IRS could collect before the CSED — if little time remains, an offer may make more sense. CNC status is attractive near the end of the statute because the clock keeps running. Use our OIC estimator to see how remaining time changes the math.

Suppose you filed your 2019 return and the IRS assessed the balance on June 1, 2020. Your CSED starts at June 1, 2030. If you submitted an Offer in Compromise that was pending for 8 months and then rejected, add 8 months plus 30 days — the CSED moves to about March 2031. If you also requested a Collection Due Process hearing that lasted 4 months, add another 4 months. Each year you owe is tracked separately, so a person with five years of debt may have five different CSEDs.

If you can make monthly payments but can't pay the full balance before the CSED, the IRS can approve a partial-payment installment agreement. You pay what you can afford based on a financial statement, the IRS reviews your finances periodically, and whatever remains when the CSED passes is no longer collectible. It's often a realistic alternative to an Offer in Compromise when time remaining is short.

Each state has its own collection statute, ranging from a few years to effectively unlimited in some states that can renew liens or judgments. Check your state's revenue agency through our state guides.

When you know where you stand, the next step is choosing a resolution. Our tax settlement calculator asks 8 questions about your balance, income and situation and shows which IRS programs — payment plan, Offer in Compromise, Currently Not Collectible or penalty abatement — your answers point toward. It's free and doesn't affect your credit.