Will It Ever End? ... Ask TaxMama ... July 9, 2004

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Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 266 July 9, 2004


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Will It Ever End?

» From: Louisiana

Dear TaxMama:

My husband and I were married in the end of 1993. In March of 1995, he was served with a summons by the IRS to file his 1988, 1991 & 1992 income tax returns. (I knew I was not liable but of course, I would be affected too).

Anyway, after "trusting" his lawyer to take care of this, we were sent copies of the returns his lawyer filed (without his signature) stating that he owed over $57,000 in back taxes.

At this point, the returns had already been mailed so instead of taking a chance on an audit and disputed the attorney's figures, we met with an IRS agent in July of 1995 and signed an installment agreement for the years 1988, 1991 & 1992, agreeing to $600.00 per month payments.

For some reason, the IRS filed a lien for the 1991 and 1992 tax years, omitting 1988(??).

Last year, we were sent a notice by the IRS stating the years 1991 & 1992 were paid in full. I immediately took action and had the tax lien released.

However, we have continued to pay the $600.00 per month in fear of something more horrible taking place against us.

Finally, my question is, will the 10 year statute of limitations apply to us come July 2005?

There has been no extension of the statute requested (not that we would agree). A letter received last Sept. 03 from the IRS stated we still owed approximately $24,000.00.

Does this mean relief if finally in sight for us?

Should we just continue paying until that time and then stop?

Thank you.

Lucie

Dear Lucie,

I find it really odd that the attorney was able to send in the tax returns without your husband's signature. Bizarre. And I understand your reluctance to change things, under the circumstances.

Good for you on getting that lien released!

But, you're right - it's nearly over.

You can call IRS - 800-829-1040 or at the phone number on those installment letters.

Ask them when the statute will expire.

If you filed sometime in 1995, and didn't apply for an offer in compromise, or tax court, or bankruptcy, or... then, your statute of limitations should expire 5 years after IRS received those tax returns.

You've still got a way to go - until the middle of next year, but yes, it's almost over!

If you're nervous about brining attention to the fact that the statute will end before you pay off the debt, wait until next year to make the call. Call IRS the month after you think the statute should expire - and before you make that month's payment.

Good luck!

Best wishes,

Eva Rosenberg
Your TaxMama

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