CSED and refund question
Hi. Hoping someone can help, though we are also planning to consult a tax professional if needed.
My husband, for several years in his adult life, filed his yearly taxes but didn’t have the money to pay them. Obviously the debt and interest accrued over time, and this was a great source of stress for us. Thankfully, due to some family inheritance money, he has been able to pay down a big chunk of it.
My understanding of tax debt is that the IRS has ten years from the CSED to collect on it. My husband paid off the more recent years of debt first. We thought we had run out the clock on 2013, and planned to do the same on 2014. Together they amount to about 18,000 dollars—so not an insignificant amount by any means.
My questions are—when we go into his IRS.gov account, we can see the 2013 tax debt still listed as owed, even though it’s been more than 10 years. Is that typical? Our plan was to try to wait until after the CSED for 2014 as well, which would be spring of 2025. Also, due to a change in employment and filing status, we now get refunds every year. (Not huge, but 1 or 2,000 dollar range.) Up until this point, the IRS has of course been applying the refund toward his debt. Can we get an extension on filing for 2024 so that we’re past that 2014 CSED? Will the debt just continue to show up on his account, even if they can’t collect on it? Will they be able to continue to take our refunds even if they can’t collect on a debt where the CSED has passed? We are basically just trying to save ourselves the most money we can. We could probably set up a payment plan for the 2013 and 2014 years of debt, but it seems like we shouldn’t have to at this point? But does that mean they’ll just keep taking our refunds?
Thanks! Any help is appreciated!