Today Dee from Akron, NY is puzzled, “in 1993, before I even met my husband, he filed his 1992 taxes with H&R Block. Now IRS is claiming my husband did not report a pension check he received that year. IRS has just put a bank levy on our joint checking account. He filed in 1993. What is the statute of limitations for collection of taxes? And can H&R Block claim any responsibility to this or are they exempt?
Well Dee,
First of all, you can’t blame H&R Block. They can only report what you tell them. They’re not clairvoyant.
As to the 1992 filing, in 1993…IRS has 10 years to collect any balances due.
However, they only have THREE years to change a tax return once it’s been filed.
Or 6 years if there was a material understatement.
Did IRS assess that tax after three years? Has your husband been getting these notices for years – or did IRS just suddenly notify him of the balance due and start collections actions?
Typically, missing pension income is caught by the CP-2000 program well within the three year limitation. I suspect that your husband has been getting notices for years – and ignoring them.
So, if they assessed him for this balance due before the deadline in 1996 or 1999, which is quite likely, he will still have to pay the balance due, including all penalties and interest. Of course, you could file an injured spouse claim to protect your share of the money in the account.
If, in fact, the statutes have run out – for collections or assessment, ask IRS to stop the levy.
If IRS won’t stop, call the Taxpayer’s Adovcate’s office for help – NOW. Their phone number is 877-777-4778 https://www.taxmama.com/IRSnews/help.htm
Incidentally, once they are served with a levy notice, the bank doesn’t have to take the money out of your account for about 20 days after the date of the levy notice, so you have the time to fight it.
And remember, you can find answers to all kinds of questions about balances due and lots of other tax issues, free. Where? Where else? At TaxMama.com
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