Question

Five years ago, as the result of an examination of your client, Pachenko, the IRS assessed a $5,000 tax liability, which remains unpaid. Which section and subsection of the Internal Revenue Code defines the length of period after assessment during which the IRS has to begin court proceedings to collect the taxes?

Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields.

IRC § ???? (?)

Answer 1

Based on the information available in the question, we can answer as follows:-

The section of the Internal Revenue code that defines the length of period after assessment during which IRS has to begin court proceedings to collect the taxes is defined under IRC Section 6502 (a). This section specifies that , such tax needs to be collected by a levy or proceeding in court,

a.) within 10 years of assessment of such taxes;

or

i.) there is an installment agreement between the taxpayer and the secretary, prior to the date which is 90 days before expiry of any period collection agreed upon.

ii.) there is a release of levy after such 10 years period.

Please let me know if you have any questions via comments and all the best !