IRS Levy and the 10-Year Statute – What If Time Is Almost Up?
IRS Levy and the 10-Year Statute – What If Time Is Almost Up?
If you're facing IRS collections, one crucial fact could work in your favor: the IRS only has 10 years to collect. This period is known as the Collection Statute Expiration Date (CSED).
If your case is nearing the end of that window, you may be able to outlast IRS enforcement or prevent aggressive action like levies—if you play your cards right.
What Is the IRS 10-Year Statute?
The IRS has exactly 10 years from the date a tax is assessed to collect on that balance. Once that period expires, they must:
- Stop all collection activity
- Remove active levies
- Release any tax liens still on file
This is why understanding IRS levies and the collection statute is so important—because when the deadline passes, the IRS loses its legal power to pursue your debt.
In short, understanding the IRS 10-year rule can make the difference between losing income to enforced collections or walking away debt-free.
Can the IRS Still Levy You Near the Deadline?
Yes—but only until the expiration date.
If your debt is set to expire soon, the IRS may ramp up collection efforts, including:
- Wage garnishments
- Bank levies
- Seizures of income sources (e.g., 1099 or merchant payments)
Related: How Long Does an IRS Levy Last?
What Pauses the 10-Year Clock?
These actions toll the statute and give the IRS more time:
- Offer in Compromise
- Bankruptcy
- CDP or CAP appeals
- Requesting a payment plan
- Submitting an Offer in Compromise
While these steps can provide relief, they also extend the IRS’s collection time. If you’re considering settling tax debt with an Offer in Compromise, it’s critical to weigh the benefit of settlement against the cost of giving the IRS more time to collect.
How to Stop a Levy When the Statute Is Nearing
- File a
Collection Due Process appeal (Form 12153)
- Request
Currently Not Collectible status
- Use strategic timing—don’t toll the clock unless it results in a resolution
We Help Orange County Taxpayers Time Out IRS Collections
At Boulanger CPA and Consulting PC, we:
- Review CSED expiration timelines
- Stop levies when collections are about to expire
- Help you avoid accidentally extending the statute
📞 Call
(657) 218-5700 or visitwww.orangecounty.cpa to learn more and explore more in Defend What’s Yours.
Frequently Asked Questions
What is the IRS 10-year statute on collections?
The IRS generally has 10 years from the date of tax assessment to collect unpaid taxes. This is known as the Collection Statute Expiration Date (CSED).
What happens to levies when the statute expires?
Once the statute expires, the IRS must release active levies and stop enforced collection on that debt. However, the IRS does not notify you automatically.
Can the 10-year statute be extended?
Yes. Bankruptcy filings, Offer in Compromise submissions, or time spent outside the U.S. can toll (pause) the 10-year clock, extending the statute.
What if the IRS levies me close to the statute expiring?
The IRS may keep funds levied before the statute expires, even if the CSED passes shortly afterward. Future levies, however, must stop.
How can I confirm my CSED date?
Your IRS account transcript lists assessment dates and statute expiration dates. A CPA can review these to confirm when collections must end.
Does California have the same 10-year rule?
No. The California Franchise Tax Board (FTB) has its own statute of limitations, often longer than the IRS’s 10 years.
Should I wait out the statute or act sooner?
It depends. The IRS often becomes more aggressive as the statute approaches. Professional guidance helps you decide whether to wait or pursue a resolution.
📣 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.
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