Once a tax arises, the IRS generally cannot release it until the tax, penalty, interest and registration fees are paid in full or until the IRS can no longer legally collect the tax. Paying your tax debt in full is the best way to get rid of a federal tax lien. Debting money for delinquent taxes can be a stressful situation and can last for years. While back taxes don't necessarily stay with you forever, the law does give the IRS at least 10 years to collect that debt.
As a general rule, there is a ten-year statute of limitations for IRS collections. This means that the IRS can attempt to collect outstanding taxes for up to ten years from the date they were assessed. Subject to some important exceptions, after the ten years have elapsed, the IRS must stop its collection efforts. Every year, the statute of limitations expires for thousands of taxpayers who owe money to the IRS.
In general, the IRS has 10 years after the evaluation date to collect back taxes and tax-related fees, although there are some exceptions. This 10-year limit is known as the Revenue Act Expiration Date (CSED) and frees tens of thousands of Americans from their tax obligations each year. In a nutshell, the statute of limitations for federal tax debt is 10 years from the date the taxes were assessed. This means that the IRS must forgive the tax debt after 10 years.
However, there are a few things to consider.
