Each tax assessment has a Collection Statute Expiration Date (CSED). Internal Revenue Code (IRC) 6502 provides that the length of the period for collection after assessment of a tax liability is 10 years. The collection statute expiration ends the government's right to pursue collection of a liability.

IRC 6502

IRC 6503

The Director, Collection Policy is the executive responsible for the policies and procedures in this IRM.

Field Management is responsible for ensuring that employees comply with guidance and procedures described in this IRM.

Program Reports:

Program Effectiveness. The program effectiveness is measured by the following review type and by level of management:

The Integrated Data Retrieval System (IDRS) provides the transaction coding (TC), definition, and calendar input date that determines the Collection Statute Expiration Date (CSED).

The Integrated Collection System (ICS) provides a report that identifies accounts for which the CSED will expire within the next 12 months.

ENTITY is the workload management system used by collection managers to extract and organize information about case activity and casework quality from ICS.

The Automated Insolvency System (AIS) provides a report that is used to identify non-debtor spouses where the collection statute will expire within two years.

This table lists most commonly used acronyms within this IRM.

IRM Resources:

Web Resources:

The IRC provides taxpayers specific rights. The Taxpayer Bill of Rights groups these rights into ten fundamental rights. See IRC 7803(a)(3). IRS employees are responsible for being familiar with and following these rights. For additional information about taxpayer rights, see https://www.irs.gov/taxpayer-bill-of-rights.

Certain transaction codes (TC) with specific reference numbers carry their own CSEDs, and display them on the Integrated Data Retrieval System (IDRS).

A list of these TC codes follows:

Certain actions allow for a suspension or extension of the CSED.

IDRS TC codes that suspend or extend CSEDs include but are not limited to:

A TC 550 extends a CSED to the date input with this transaction on an IMF account.

To further identify the use of the TC 550, a list of definer codes and their use follows:

In a case under the Bankruptcy Code, the CSED is suspended while the IRS is prohibited from collecting, and for six months thereafter. For more information see IRC 6503(h)(2). Thus, the CSED is generally suspended while the automatic stay imposed by the bankruptcy is in effect. Even if the suspension of the CSED under IRC 6503(h) no longer applies, the CSED still may be suspended when substantially all the debtor’s assets remain in the custody or control of the bankruptcy court under IRC 6503(b). For more information see IRM 5.9.4.3, ASED/CSED.

Contact Insolvency if there are any questions about the effect of bankruptcy, particularly multiple bankruptcies, on the CSED.

Per IRC 6502(a) a court action brought against the taxpayer for the collection of tax prior to the expiration of the collection statute extends the period to collect until the tax liability or judgment against the taxpayer is satisfied or becomes unenforceable.

There is an exception to the ten-year CSED (see IRM 5.1.5.18, Collection Actions on Cases with Restitution-Based Assessments (RBAs) for guidance related to some RBA cases. Field Collection employees are to contact the assigned advisor for guidance on these RBA cases with limited periods of enforceability issues.

The CSED is suspended from the date the IRS receives a timely filed request for a CDP hearing to the date the taxpayer withdraws their request for a CDP hearing or the date the determination from the Independent Office of Appeals (Appeals) becomes final, including any court appeals. See IRC 6330 (e)(1).

If less than 90 days of the statute of limitations remains when the determination becomes final, the statute of limitations is extended to equal 90 days. The collection statute is not extended for equivalency hearings. See IRC 6330(e)(1).

For more information see IRM 5.1.9.3.6, Suspension of Collection Statute of Limitations, and 26 CFR 301.6330–1(g)(3), ex. 1.

For requests to extend the CSED made prior to January 1, 2000 in connection with a pending offer prior to January 1, 2000, the CSED extension was affected by Treasury Regulation 301.7122–1(f) (1960). Under this regulation the practice of the IRS generally was to obtain from the taxpayer a waiver of the CSED for the period the offer in compromise was pending, while any installment of an accepted offer remained unpaid, and for one additional year thereafter.

For requests to extend the CSED made prior to January 1, 2000 in connection with a pending offer that extended the CSED beyond the original 10-year collection statute, a waiver of the CSED cannot extend the CSED beyond either December 31, 2002, or the original CSED, whichever is later, see section 3461(c)(2) (A) and (B) of the IRS Restructuring and Reform Act of 1998.

For offers pending on or made after December 31, 1999, and before December 21, 2000, the collection statute of limitations is suspended by IRC 6331(k)(1) and (3)while the IRS is prohibited from levying.

The IRS is prohibited from levying and the CSED is suspended under the following provisions:

CSED extensions for the period of time "while any installment remains unpaid" and "for one additional year thereafter" are eliminated. No days are suspended before December 31, 1999, or after December 20, 2000.

The Community Renewal Tax Relief Act of 2000, effective December 21, 2000, amended IRC 6331(k)(3) and eliminated the suspension of the CSED while offers (and installment agreements) were pending.

The Job Creation and Workers Assistance Act of 2002, effective March 9, 2002, amended IRC 6331(k)(3) and reinstated the same CSED suspensions as described above with respect to both offers and installment agreements while levy is prohibited. This amendment suspends the CSED for the number of days on or after March 9 that an offer is pending, during the 30 days to appeal the rejection.

Cases may be encountered where prior rules were in effect. For more information see IRM 5.8.10.7, Effect of Previous Offers on Collection Statute.

For requests to extend the CSED made prior to January 1, 2000, in connection with an installment agreement that extended the CSED beyond the original 10-year collection statute, the CSED waiver expires 90 days after the end of the period of the extension, pursuant to section 3461(c)(2)(C) of the IRS Restructuring and Reform Act of 1998.

For requests to extend the CSED on or after January 1, 2000 in connection with an installment agreement, the statute of limitations is suspended under IRC 6502(a)(2) for the period agreed to in writing by the IRS and the taxpayer and for 90 days after that period expires.

Form 900, Tax Collection Waiver, is only executed in connection with the granting a partial pay installment agreement and only in certain situations. See IRM 5.14.2.2.3, Waiver Procedures for Partial Payment Installment Agreements. IRS policy dictates that a Form 900 be limited to no more than five years, plus up to one year to account for changes in the agreement.

For an installment agreement request pending on or made after December 31, 1999 through December 21, 2000, with which there is no CSED waiver given, the collection statute of limitations is suspended under IRC 6331(k)(2) and (3) while the IRS is prohibited from levying.

The IRS is prohibited from levying, and the CSED is suspended under these provisions:

No days are suspended under section 6331(k)(2) and (3) before December 31, 1999 or after December 20, 2000.

The Community Renewal Tax Relief Act of 2000, effective December 21, 2000, amended IRC 6331(k)(2) and eliminated the suspension of the CSED.

The Job Creation and Workers Assistance Act of 2002, effective March 9, 2002 amended IRC 6331(k)(3) and reinstated the same CSED suspensions as described above during the time that a levy is prohibited for both pending offers and installment agreements, and terminated installment agreements. This amendment suspends the CSED for the number of days on or after March 9 that an installment agreement is pending, during the 30 days to appeal the rejection, during a timely-filed appeal of the rejection, during the 30 days to appeal the termination, or during a timely-filed appeal of the termination.

Unless collection will be jeopardized by delay, collection by levy or proceeding in court against a requesting spouse is suspended if they make a qualifying request under IRC 6015(b) or IRC 6015(c). Collection against a requesting spouse is suspended if they make a qualifying request under IRC 6015(f) and the liability arose on or after December 20, 2006, or arose prior to December 20, 2006 and remained unpaid as of that date. For more information see IRM 25.15.1.8, Statute of Limitations on Collection.

The collection period is suspended from the filing of the claim until the earlier of the date a waiver is filed, or until the expiration of the 90-day period for petitioning the Tax Court, or if a Tax Court petition is filed, when the Tax Court decision becomes final, plus, in each instance, 60 days.

If a request for relief is made in response to collection due process procedures, collection activity is suspended and the collection period provided for by IRC 6330(e) for the period during which any administrative hearings, and appeals therein, regarding the levy are pending. The rules for suspension under IRC 6330 differ from IRC 6015. In general, the latest suspension of collection and the collection period should control, which may require analyzing the suspension under both IRC 6015 and IRC 6330 where relief from joint and several liability is requested as part of an IRC 6330 hearing.

If the requesting spouse signs a waiver of the restrictions on collection, the suspension of the period of limitations on collection against the requesting spouse will terminate 60 days after the waiver is filed with the IRS, limiting the CSED extension to the period from when the claim was filed to the time the waiver was signed, plus 60 days.

A request for reconsideration is not a qualifying request for relief for purposes of 26 CFR 1.6015-1(h)(5), and does not trigger the restrictions on collection pursuant to IRC 6015(e)(1)(B) or the suspension of the collection period of limitation under IRC 6015(e)(2).

The period of limitations on collection after assessment is suspended while the taxpayer is outside the United States if the absence is for a continuous period of at least six months per IRC 6503(c) .

To make certain that the Government has an opportunity to collect the tax after the taxpayer's return, the period does not expire (where the taxpayer has been out of the country for six months or more) before a minimum of six months after the taxpayer's return to the country. As the application of this provision can result in the CSED being suspended for a very long time, policies for the administration of this code section are now established.

Under IRC 7508 the deadlines for certain acts performed by either taxpayers and the IRS are postponed when the taxpayer serves in:

The acts specified in IRC 7508 include:

A deadline is postponed while the taxpayer serves in the area or operation and for any period of continuous qualified hospitalization from such service (limited to 5 years of hospitalization in the United States), plus 180 days after the last day of service in the area of operation or period of hospitalization. The deadline is also extended by the number of days of the filing season (i.e. the period from January 1 to April 15) that the taxpayer was in a combat zone, up to 105 days (106 in a leap year). See IRM 5.1.7.10, Accounts of Taxpayers Who Serve in a Combat Zone.

The CSED is suspended from the entry date to the exit date plus 180 days. No additional dates are added to the CSED suspension for time served during a filing season.

The combat zone or contingency operation freeze code suspends the CSED and can be set in two ways:

Once a taxpayer has been in a Combat Zone the "-C" freeze remains on the account for historical purposes, even with accurate entry and exit dates.

Research IMFOLI for the Combat Indicator on line 11.

Under the Service Members Civil Relief Act of 2003 (cited as 50 USC. 4000) the collection of any income tax due from any person in the military service, whether falling due before or during military service, may be deferred up to 180 days if ability to pay the tax is materially affected because of that person's military service. The CSED is suspended during the taxpayer's military service and for an additional 270 days afterward.

A military deferment suspends the CSED. The Transaction Code 500 with Closing Code 51 identifies a military deferment. For more information see IRM 5.1.7.13.1, Military Deferment Procedures.

A wrongful levy suspends the running of the period of limitation on collection pursuant to IRC 6503(f)(1). The collection statute is suspended for a period equal to the period from the date property is wrongfully seized or received to the date returned under IRC 6343(b) or the date on which a judgment under IRC 7426 becomes final, plus an additional 30 days. Definer code 08 is used with TC 550.

The suspension is only applicable to an amount equal to the amount of money or the value of the property returned. For more information see IRM 5.10.6.15, Wrongful Seizure - Payment of Claims After Sale.

A wrongful lien suspends the running of the period of limitations on collection. Under IRC 6503(f)(2) the collection statute is suspended from the date any person becomes entitled to a certificate of discharge of lien under IRC 6325(b)(4) until the earlier of the earliest date on which the IRS no longer holds any amount as a deposit or bond under IRC 6325(b)(4) or the date on which a judgment under IRC 7426(b)(5) concerning the amount deposited or used as bond, becomes final. Definer code 08 is used with TC 550.

Where the period of limitations is suspended under this provision, it is suspended only for the value of the interest of the United States in the property plus interest, penalties, additions to tax, and additional amounts attributable. For more information, see IRM 5.12.10.3.5.5, Suspension of the Running of the Statute.

Taxes assessed on Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return, are allowed various special elections under the Internal Revenue Code that allow for deferral of payment of estate taxes due. Under IRC 6503(d) the CSED is suspended for the period of any extension of time for payment that is granted under IRC 6161, IRC 6163, or IRC 6166.. See also IRM 5.5.7.6, Estate Tax Collection Statute Expiration Date (CSED).

The two code sections commonly used to defer payment of estate tax due are sections, IRC 6166 and IRC 6161. Estates must meet specifications outlined in the Code in order to qualify for these payment deferrals.

IRC 6166 generally allows for a five-year deferral and thereafter annual installment payments over a 10-year period. TC 488 is input on IDRS to identify accounts that may have been granted a payment deferral under IRC 6166. Generally the CSED is extended for the period of time between the tax assessment date and TC 489 date, which reflects reversal of the allowance of this special election. IRM 5.5.7.6.2, CSED - IRC 6166 Deferred Tax, provides additional information on collection of estate tax accounts and the CSED. Also, IRM 5.5.7.6.2.1, CSED - All Tax Deferred Under IRC 6166 and IRM 5.5.7.6.2.2, Multiple CSEDs - Tax Deferred Under IRC 6166 and Tax Non-Deferred provides additional information on how to determine the CSED on IRC 6166 accounts.

IRC 6161 allows an extension to pay estate taxes for up to 12 month increments for a maximum of 10 years for taxes reported on the return and a maximum of four years for amounts determined as a deficiency. TC 468 is input on IDRS to identify accounts that may have been granted additional time to pay estate taxes due under IRC 6161. Generally the CSED is suspended from the date of the assessment of the tax to the extended payment date as shown on IDRS TC 468 next to “EXT - DT>. IRM 5.5.7.6.1, CSED - IRC 6161 Extension of Time to Pay Requests, provides additional information on IRC 6161 accounts and the CSED. Also, IRM 5.5.7.6.1.1, CSED - Initial IRC 6161 Extension of Time to Pay Requests, IRM 5.5.7.6.1.2, CSED - Subsequent IRC 6161 Extension of Time to Pay Requests, and IRM 5.5.7.6.1.3, CSED - Denial of IRC 6161 Extension of Time to Pay Requests provides additional information on how to determine the CSED on IRC 6166 accounts.

An extension to pay under IRC 6161 may be requested on annual installment payments deferred under IRC 6166. Both the IRC 6166 election and the IRC 6161 election suspend the collection statute. When more than one action suspends the running of the collection statute, and the suspensions overlap, the collection statute is suspended only once. See IRM 5.1.19.3 , Case Actions That Can Suspend And/Or Extend A CSED and IRM 5.5.7.6.2, CSED - IRC 6166 Deferred Tax for additional information.

CSEDs should always be checked when working estate tax accounts. The Advisory Estate Tax Lien Group can provide assistance with proper calculation of the CSED related to IRC 6161, 6163, and 6166.

The tax liens under IRC 6324(a) and IRC 6324(b) expire exactly 10 years from the decedent's death or the date of the gift, respectively, whether or not any action for the collection of such tax has been commenced or the CSED under IRC 6502 remains open.

IRC 7811(d) and the accompanying regulations provide that if a taxpayer submits a Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), the statute of limitations on collection and/or assessment will be suspended beginning on the Taxpayer Advocate Received Date and ending on the TAS decision date. See IRM 13.1.14 , Suspension of the Statutes of Limitation Under IRC 7811(d).

Due to systemic programming limitations, the Commissioner decided in November 2003, that Taxpayer Advocate Service (TAS) does not have to input the appropriate IDRS codes to reflect the suspension of the statute of limitations under IRC 7811(d). The program limitations are still in effect. Therefore, IDRS codes are not input to show the correct suspension periods for IRC 7811(d) at this time. See IRM 13.1.14.2, No Implementation of IRC 7811(d) Statute Suspension .

Under IRC 4961(c) the collection statute of limitations to collect second-tier taxes is suspended while levy and proceeding in court are prohibited to collect second-tier taxes. Levy and proceeding in court are prohibited if within 90 days after the second-tier tax is assessed the first tier tax is paid in full, a claim for refund is filed and denied, and a suit for refund is filed within 90 days after the refund claim is denied. See Pub 5616, section II E, Enforcement of the Two-Teir Tax Scheme. The prohibition lasts during the timely filed action until a judgment becomes final and during a later supplemental proceeding under section 4961(b) (after the refund suit judgment becomes final) until the determination therein becomes final. If an action is not filed within 90 days after the refund claim is denied, levy and proceeding in court are prohibited until the end of the 90-day period. Levy and proceeding in court are prohibited from the assessment of the second-tier tax until the end of the 90-day period if the first-tier tax is not paid in full or a refund claim filed within the 90-day period.

When a taxpayer fails to file a timely income tax return or files a false or fraudulent return, the IRS may execute a return under the authority of the IRC 6020(b) and make an assessment pursuant to deficiency procedures. If the taxpayer fails to respond to the notice of deficiency, the IRS makes a deficiency assessment. The IRS may also make a deficiency assessment if the deficiency is upheld by the Tax Court. Upon that assessment, the 10-year period of limitations on collection begins per IRC 6502(a)(1).

If the taxpayer later files their own "original" return showing a tax liability smaller than the assessed liability, and that return is accepted by the IRS as filed, the deficiency assessment should be abated to show the amount of tax reflected on the taxpayer's return. The original CSED date remains intact.

If the taxpayer's "original" return reflects more tax than that assessed from the notice of deficiency based on IRC 6020(b) return, then an additional assessment is input for the increased amount. In this scenario, the original CSED remains intact and a second CSED will be systemically established based on the additional assessment.

Prior to its amendment by the Restructuring and Reform Act of 1998 (RRA 98), IRC 6502(a) authorized the Secretary to accept waivers extending the statute of limitations on collection after assessment prior to the expiration of the collection period. The Code did not place any restrictions on the length of the extension, the number of times an extension could be granted or the circumstances under which an extension could be obtained. RRA 98 significantly revised the law regarding CSED waivers. Extensions in effect on December 31, 1999, as well as requests for extensions made on or before December 31, 1999, that resulted in extension being in effect, are subject to the following:

On or after January 1, 2000, waivers of the collection period must be in writing and are secured only when the extension is agreed to:

You are responsible for monitoring any imminent CSEDs in cases assigned to you. Some of the various ways to do this are:

When working imminent CSEDs it is recommended the imminent CSED be verified to prevent enforced collection after it has expired. Verification includes reviewing the tax module for suspending event irregularities that potentially create an inaccurate CSED, and may require a manual computation to correct. Refer to IRM 5.1.19.6, Collection Statute Review. If verification and/or manual computation concludes the CSED has already expired, request the input of TC 534 to write-off the expired balance. Select ICS template Form 3870- Other Assessment Request to CCP (Philadelphia). Refer to IRM 5.1.19.5.4.1, Expiration of the Collection Statute for Fewer Than All Assessments, and IRM 5.16.1.2.2.3, Master File Partial Statute Expiration.

Newly received imminent CSED accounts should receive taxpayer contact as soon as possible.

Timely follow-ups should be made and there should be no lapses in case activity.

Imminent CSED accounts sometimes include modules that do not have imminent CSEDs. It is important that all modules are worked appropriately. However, low dollar imminent CSED accounts should not receive undue or excessive attention simply because the collection statute is imminent.

Cases should not be closed with an inappropriate CNC closing code merely because an imminent CSED is about to expire on one or more modules. If an investigation has been completed prior to the expiration that shows the account to be truly uncollectible, based on the facts of the case, all modules should be reported as such under the appropriate CNC closing code as directed in IRM 5.16.1, Currently Not Collectible.

Upon receipt of an imminent CSED module, or when CSED(s) become imminent, discuss with your group manager the imminent CSED(s) during the first Collection Consultation (CC) following receipt. Discuss and agree on the most appropriate plan of action based on the facts of the case.

The group manager will document the initial plan of action in the case history during the CC. In subsequent CCs or as facts warrant, the RO will keep the group manager advised of the progress of all imminent CSED modules.

If a case is received with 120 days or less left on the CSED, without delay make an immediate appointment with your group manager. The RO and manager will discuss the case as an ad hoc CC, and the GM will document the initial plan of action in the case history during the ad hoc CC.

If all appropriate case actions have been taken without resolving the imminent CSED module prior to expiration, it may be permissible to let the collection statute expire in inventory with the group manager's prior concurrence.

Document the case history with a summarizing statement that contains the specific MFT, Tax Period, Amount, CSED and facts to support the decision prior to statute expiration.

The group manager will review the summary and case history. If the group manager does not concur, the group manager and revenue officer will discuss and document a new plan of action.

If a collection statute expired without the group manager's prior concurrence or due to inappropriate case actions, enter a statement in the case history addressing the reasons why the statute expired. The statement should include any unusual or mitigating circumstances.

The group manager will review the summary, case history, and any other relevant information to determine if further administrative action is warranted, and whether disciplinary action is appropriate. The group manager will prepare a memo to the territory manager detailing why the CSED expired, why further administrative action is or is not warranted, and to include discipline if appropriate.

The territory manager will review the memo and determine if it should be forwarded to the area director for recommended potential disciplinary action.

If the collection statute expires on a Bal Due, non-field other investigation (NFOI), or any other open module in the control of another function, e.g., Area Counsel, Appeals, etc., then advise the manager and document the circumstances of the expiration in the case history.

Statute expiration will normally generate a TC 608 credit to zero out a module within several cycles; therefore, it is not necessary to prepare a Form 53 to report an expired CSED account in most instances.

In some instances, such as non-master file and filing a suit, it will be necessary to prepare a Form 53 using closing codes 04 or 05. For more information see IRM 5.16.1.2.2, Statute Expiration.