Understanding the Collection Statute Expiration Date (CSED)

The Collection Statute Expiration Date (CSED) marks the end of the IRS’s legal authority to collect taxes, penalties, and interest. Under IRC § 6502, the IRS generally has 10 years from the date of assessment to collect a tax debt. Once that period expires, the IRS can no longer pursue collection—unless certain actions extend the deadline.

How the CSED Works

The 10-year countdown begins when a tax is officially assessed—the IRS records the liability after a return is filed or due (whichever is later). A Notice of Assessment usually follows, starting the clock.
Each tax year has its own CSED. When the CSED expires, the IRS can’t take further collection action unless extended by agreement or certain legal events.

How to Calculate the CSED

To estimate your CSED:

1. Find the Assessment Date – Look on an IRS transcript or tax lien notice.
2. Add 10 Years – That’s your base CSED.
3. Account for Tolling Events – These pause or extend the 10-year window.

Common Events That Extend the CSED

The IRS collection period can be extended by certain events:

• Installment Agreements
• Tolling occurs while a request is pending + 30 days after denial or termination.
• Offer in Compromise (OIC)
• Tolling runs while the offer is under review + 30 days after rejection.
• Bankruptcy
• Tolling during proceedings + 6 months post-resolution.
• Collection Due Process (CDP) Hearings
• Tolling through hearing + appeals, and 90 days if fewer than 90 remain.
• Innocent Spouse Relief
• Tolling while under review + 60 days after decision.
• Living Abroad
• Tolling for time spent outside the U.S. (6+ months).
• Litigation
• Tolling during the duration of a court case.

How to Check Your CSED

You can verify your CSED by:

• Calling the IRS for dates on specific years.
• Requesting an IRS Tax Account Transcript (shows assessments and tolling adjustments).
• Consulting a Tax Professional for accurate interpretation.

Frequently Asked Questions (FAQ)

Q1: What is the Collection Statute Expiration Date (CSED)?
A: The CSED is the date when the IRS’s legal authority to collect a tax debt expires, typically 10 years from the date of assessment. After this date, the IRS can no longer pursue collection actions unless the period is extended due to specific events.

Q2: How can I find out my CSED?
A: You can determine your CSED by reviewing your IRS account transcript, which lists assessment dates and any tolling events. Alternatively, you can contact the IRS directly or consult with a tax professional for assistance.

Q3: What events can extend the CSED?
A: Events such as filing for bankruptcy, submitting an Offer in Compromise, requesting a Collection Due Process hearing, or living abroad for an extended period can suspend or extend the CSED, effectively lengthening the IRS’s collection period.

Q4: Does entering into an installment agreement affect the CSED?
A: Yes, the CSED is suspended while an installment agreement request is pending and for 30 days after a rejection or termination. However, once the agreement is active, the CSED continues to run.

Q5: Why is understanding the CSED important?
A: Knowing your CSED helps you understand the timeframe the IRS has to collect your tax debt, allowing you to make informed decisions about payment plans, Offers in Compromise, or other tax resolution strategies.

Need Assistance with Your Tax Debt?

Understanding and managing your CSED is crucial in resolving tax debts effectively. If you’re uncertain about your CSED or need guidance on the best course of action, our experienced tax professionals are here to help.