The 10-Year Collection Statute – Why It Is So Important for Orange County Taxpayers

When you owe the IRS, every notice, letter, or collection call can feel like a ticking time bomb. But here's what many Orange County residents don’t realize — the IRS has a time limit. It’s called the 10-Year Collection Statute of Limitations, and it may be the key to eliminating your tax debt for good.

At Boulanger CPA and Consulting PC, we help taxpayers across Orange County, CA use this statute to protect their income, homes, and businesses. Whether you're in Irvine, Costa Mesa, Newport Beach, or anywhere in between — knowing how this rule works is essential to your tax resolution strategy.

What Is the IRS 10-Year Collection Statute?

The 10-Year Collection Statute of Limitations is the legal deadline the IRS has to collect a tax debt. From the date of assessment (not when you filed), the IRS has 10 years to collect — after that, the debt expires.

This deadline is known as the Collection Statute Expiration Date (CSED). Once that date passes, the IRS legally can no longer pursue you for that debt. This applies to individuals and businesses alike, and it’s a crucial component of many successful tax resolution strategies in Orange County. That’s why it’s critical to understand your IRS collection timeline with help from a local CPA.

Why It Matters for Orange County Residents

1. It Limits IRS Collection Power

The IRS can levy your bank account or garnish wages without going to court. In high-income areas like Irvine or Newport Beach, this can mean tens of thousands of dollars at risk. But the 10-year statute limits how long they can keep coming after you.

2. It Affects Your  Tax Resolution Strategy

Let’s say you live in Santa Ana and owe taxes from 2014. If your CSED is in 2025, you may be able to avoid a long-term payment plan that just prolongs the pain. Instead, we may help you position yourself to wait out the statute or seek hardship status.

3. It Strengthens Negotiation Leverage

When the statute is close to expiring, the IRS may be more willing to negotiate an Offer in Compromise, Currently Not Collectible status, or a partial pay Installment Agreement.

4. It Offers Real Peace of Mind

For many Orange County families and entrepreneurs, understanding that there’s a legal end in sight helps reduce stress — especially for those juggling other financial pressures like rent, payroll, or California’s high cost of living.

When the Clock Starts (And How It Can Pause)

The 10-year period begins when the IRS assesses the debt — not necessarily when you filed (or didn’t file). But certain actions can pause the clock, which can unknowingly extend the statute:

• Filing bankruptcy
• Submitting an Offer in Compromise
• Filing a Collection Due Process appeal
• Living abroad for 6+ months
• Requesting innocent spouse relief

We’ve seen Orange County taxpayers in Anaheim and Tustin lose valuable time because they weren’t aware of these tolling events. That’s why we always pull IRS transcripts to find your statute expiration before recommending any course of action.

What Happens When the 10 Years Are Up?

Once the 10-year period ends, the IRS must:

• Cease collections
• Stop all wage garnishments and bank levies
• Release tax liens (after filing form 12277)
• Write off the balance as uncollectible

Here’s the catch: the IRS won’t always tell you when your debt expires. That’s why having a proactive, local tax professional matters.

Orange County Case Study

A client in Huntington Beach came to us with over $60,000 in IRS debt. After reviewing transcripts, we found that several of her tax years were less than 18 months away from expiring under the CSED. Instead of locking her into a full-pay agreement, we successfully negotiated a partial pay plan and let the clock run out on the remaining years. In some cases, it may be wiser to consider settling your debt before the statute expires.

Knowing the statute timeline saved her over $40,000.

How to Find Your CSED (And What to Do With It)

You can’t rely on IRS notices to give you this info. You need to:

1. Request IRS account transcripts
2. Track each year’s assessment date
3. Log any tolling events that paused the clock
4. Calculate your real CSED window

This is something we do for every client we help in Orange County, from small business owners in Mission Viejo to retirees in Laguna Niguel.

How Boulanger CPA Can Help

At Boulanger CPA and Consulting PC, we specialize in helping Orange County taxpayers deal with IRS problems — and the 10-year statute is one of the most powerful tools in our arsenal.

We’ll help you:

• Identify your Collection Statute Expiration Date
• Review IRS records for tolling events
• Stop enforced collection while the 10-year clock runs
• Handle all IRS communication on your behalf
• Avoid extending the statute unnecessarily

We serve clients virtually throughout California and offer in-person appointments at our Orange County office (by appointment only).

Serving Orange County Taxpayers in:

• Irvine
• Santa Ana
• Anaheim
• Costa Mesa
• Huntington Beach
• Newport Beach
• Tustin
• Mission Viejo
• Laguna Beach
• Laguna Niguel

Final Word: Time Might Be On Your Side — If You Act Smart

If you’re dealing with IRS tax debt in Orange County, the 10-year statute might be the light at the end of the tunnel. But only if you know how to use it. Don’t let the IRS outplay you with delay tactics and tolling traps. But we’ve also seen how costly it can be to don’t ignore certified mail from the IRS while waiting out the statute.

Get expert help from a local CPA who knows how to use the law — and the clock — in your favor.

Let’s Figure Out When the IRS Clock Runs Out on You

Call Today: 657-218-5700
  Email: marc@boulangercpa.com
Visit: www.orangecounty.cpa

Frequently Asked Questions About the IRS 10-Year Collection Statute

📣 About the Author

Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.

He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.

With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.

Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.

Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.

📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.