Most people have no idea that Federal Tax Liens have a statue of limitation. The Federal Tax lien can and will expire by federal statute. The IRS federal tax lien is only good for ten ( 10) years. It then drifts off into the darkness as though it was never filed or existed.

The IRS has ten years from the original date of tax assessment to collect the tax that is due and owing. This is called the TC 150 Date.

Caution: you may have multiple years you  owe, each tax period generally has it’s own statute. The best way to find out when your statue expires is to have a tax resolution company pull a transcript and fully examine the case history to make sure the statutes were not extended. Each tax period must be checked separately.  One reason in hiring a professional company is that they have a tax professional hot-line telephone number to call and pull  your  tax transcripts.

BEWARE: if you call IRS on your own and the statue is not expired, the IRS may reopen your case file again. Do not give IRS an information. If they think you are trying to beat the statue , they may reactivate the case back into the system for collection action.

The statue of limitations can be extended past the ten years statue period if one of these events took place:

1. there was  bankruptcy filed during the ten year period
2. the IRS reduced the federal tax lien to a judgment
3. there was tax court litigation during the ten years on the tax period in question
4. a collection due process appeal was filed during the 10 years.
5. a filed offer in compromise on the tax periods would have extended the statue for the amount of time the offer was being reviewed.
6. if you were outside the U.S. the period extends for the time you were outside the country
7. the taxpayer voluntarily signs a waiver extending the collection statute. This usually happens with the signing of tax Form 900
8. military deferments extend the statue as well
9. a taxpayer assistance order also called a TAO extends the period as well

A good tax resolution can usually get you a release of the Federal Tax Lien within 2 weeks after the statute blows.
Each taxpayer’s situation is unique and may possess its own complexities, it’s important for the taxpayer to not assume that a tax liability has expired just because ten years has passed.