Sometimes taxpayers contact TAS for help with one issue and, in resolving that issue, multiple issues arise – some of them quite complex. In this case, a taxpayer contacted TAS for help with a payment agreement for overdue taxes spanning more than twenty tax years. In researching the taxpayer’s accounts, the case advocate noted some expired collection statutes. The IRS generally has ten years from the date the return is filed and assessed to collect the taxes.
The advocate sent a referral to the IRS and asked it to correct the statutes on the taxpayer’s accounts, but the IRS’s initial response was that the taxpayer’s statutes were correct. The advocate consulted with a technical advisor, found additional IRS guidance and sent another request to the IRS asking it to make the necessary account corrections. The advocate’s persistence, advocacy, and thorough research resulted in the taxpayer paying no more than the correct amount of tax. In this case, the taxpayer’s debt was rightfully reduced by more than $100,000.00.