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IRS's Best Kept Secret - Your taxes have expiration dates called CSEDs.


How your CSEDs can save you money.

CSEDs is an acronym that stands for "Collection Statute Expiration Dates", and if you hate "government speak" IRS acronyms, we understand that, but this one you do want to know about because it can be worth a lot of money to you if you owe money to the IRS.

Typically, your taxes will expire ten years from the date that your tax return was accepted and the taxes were recorded. The date your taxes will expire is a CSED.

There is a CSED, a date for expiration, for each year you file your taxes.

If you have back taxes for years past then you need to understand when your taxes will expire because there are used to make key decisions.

Generally, it takes ten years and there are a few exceptions that extend the time period beyond 10 years.  For now, just know it is typically, 10 years.

If you call the IRS and want to sound like you know what you are talking about, it is pronounced "SeeSeds".

One reason CSED's are so important is because the are used in a formula the IRS uses to calculate whether or not you qualify for an Offer in Compromise.

Additionally, you will want to take special notice if you have some CSED's that are close to their expiration date or dates.

To give you just one example, it may be more advisable to, rather than going for an Offer in Compromise now, you could get into an installment plan and let some of your taxes expire. Paying nothing for a year or multiple years might be better than paying the IRS in an Offer in Compromise because every year that expires goes to Zero (0).

The best plan might be to wait a bit on an offer and pay a low installment amount each month until old years drop off, then file an OIC and take care of the rest at a later date. You could end up paying very little of the original amount.

You have to stay "compliant" and that means you must file your tax returns as they come due, including extensions of time to file and you must pay all of the new taxes you owe in a timely manner. This includes adequate withholding and if you are self-employed you must keep up with your quarterly estimated taxes.

If you are new to this it may take a little bit of effort to understand how these dates impact the calculation of how much your must pay the IRS, but just hang in there because TaxULess will show you how you can do it and CSED's may save you a lot of money.