Many people wonder if their tax debt will just disappear over time. The truth is, yes, tax debt can go away, but not the way you might hope. The IRS has a 10-year statute of limitations on collecting tax debt, meaning they generally only have 10 years from the date the tax was assessed to collect what you owe. After that, the debt may expire. However, this doesn’t mean you can simply wait it out. If the IRS believes you’re avoiding payment, they can suspend the clock with legal actions like bankruptcy, leaving the debt in limbo.
During those 10 years, the IRS has powerful tools at its disposal to collect: garnishing your wages, freezing bank accounts, placing liens on your property, or even seizing assets in serious cases. These enforcement tactics don’t slow down unless you take formal steps to resolve the debt. Just waiting and hoping it disappears could result in more penalties, interest, and long-term financial damage.If you’re struggling with back taxes, there are proactive ways to take control. You might qualify for an Offer in Compromise, where you settle for less than what you owe. You could also apply for a payment plan, or in certain cases, be marked as Currently Not Collectible due to financial hardship. It is important to talk to an IRS tax debt attorney to figure out your options. The sooner you act, the more options you’ll have, and the less power the IRS will hold over your finances.
