What happens to the tax liability after the IRS lien expires?

Asked almost 2 years ago - Campbell, CA

I am in an uncollectable status with the IRS but have a lien against me. If my situation doesn't change, as interest and penalties continue to grow, after the lien expires, does the liability drop off too?

Attorney answers (3)

  1. John Adam Wetenkamp

    Contributor Level 12

    6

    Lawyers agree

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    Answered . If your account remains in Currently Not Collectible status until the statute of limitations (a.k.a., Collection Statute Expiration Date) expires then the government will no longer be able to collect the debt. The CSED is 10 years from the date of assessment, subject to some exceptions.

    This response should not be considered legal advice. No attorney-client relationship is formed by this response,... more
  2. Christopher Michael Larson

    Pro

    Contributor Level 19

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    Answered . You have the process backwards. While you are in CNC status, the 10 year period for collection continues to run. Once the 10 years passes, the amount is no longer owed, so the lien is removed as the IRS no longer has an interest to protect.

    Christopher Larson
    Insight Law

  3. Jeffrey Anton Collins

    Contributor Level 10

    5

    Lawyers agree

    1

    Answered . I agree with Attorney Larson. One note: You may have to contact IRS and request a Release of Lien. Otherwise, it may take years to actually see proof of the liability released.

    Attorney J Anton Collins is a featured Criminal Tax Defense Attorney on Avvo. You may contact Attorney Collins... more

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