Tax Day Pay today! Else this may happen to you.
This sign was on the mast of a fine sailboat, about a 40 footer, in the Kemah TX marina in 2006. I don’t know why the IRS confiscated the boat. However the IRS has long tendrils and unlimited resources. The most likely cause would be failure to pay an outstanding tax bill. As a general rule, there is a ten year statute of limitations on IRS collections. This means that the IRS can attempt to collect your unpaid taxes for up to ten years from the date they were assessed. Subject to some important exceptions, once the ten years are up, the IRS has to stop its collection efforts. Every year, the statute of limitations expires for thousands of taxpayers who owe the IRS money. The ten-year limitations period is not absolute. It can be extended if you voluntarily agree to do so.
No Statute of Limitations
However it is also important to note that no deadline applies where the IRS can establish that a taxpayer has: 1) filed a false or fraudulent return; 2) willfully attempted to evade tax; or 3) failed to file a return. Unlike the circumstances where tax returns are filed (even with errors), these are cases in which a taxpayer is willfully or intentionally not filing taxes or is filing fraudulent return(s). Not only will there be no time limit on IRS action against such taxpayers, but interest fees and penalties will apply.
30% of the time the IRS gets something wrong. As a result that should encourage taxpayers in a seizure situation to verify everything. Additionally and where appropriate seek professional advice. Be careful out there.
Finally let this be a word of warning on the favorite day! Don’t forget. Tax Day Pay Today!
