Collection Statute Expiration Date (CSED) Overturned Saving $280,000
Jul 28, 2016OUTCOME: The taxpayer was awarded a Taxpayer Assistance Order that overturned the IRS’s CSED calculations. If the IRS was not challenged on the CSED calculations it would have unlawfully collected the entire $280,000 from the taxpayer.
The IRS generally has ten years to collect taxes owed. In this case, the IRS claimed it still had the authority to collect back taxes that were 15+ years old, citing various tolling events (events tha ... t extend the statute). However, after Tax Attorney Shawn Spaulding reviewed the taxpayer’s account transcripts he discovered the reported tolling events were erroneous. He then supplemented his findings with a recent study that showed the IRS miscalculates CSEDs nearly 40% of the time (of the 40%, 86% of the errors favor the IRS).
