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  Dear
Tax Talk,
I just recently filed a return which had me receiving about $2,600
back, which is great as I just lost my job and this was going to
help me get through at least a month of my expenses with no worries.
However, I just found out that the IRS is taking more than half
of it for a tax debt my husband owes from 1992 and holding it up
for another six to eight weeks. I found the injured-spouse form
on the IRS Web site and intend on submitting this once I receive
whatever return I have left. But aren't there statutes as to how
far back they can go? And what started out as a $300 debt has turned
into $1,500 and still accruing until they decide to post this payment
in their column for the good. What else can I do? Is there something
I can do to bring down the amount of interest they have and are
charging? Please advise. Thank you.
-- Kristyn
 Dear
Kristyn,
The usual rule is that the Internal Revenue Service has 10 years
to collect a tax debt, so 1992 would seem to be out of the question.
However, the 10 years starts running from the time that the IRS
makes the assessment for the underpaid tax.
You can determine the date of an assessment by requesting
a transcript of your account on Form 4506. Usually tax is assessed
when your return is filed; however, the tax may be later assessed
by exam. An underpayment of tax can have an assessment date later
than when the return is filed as it goes through a collection process.
When collection attempts fail a summary assessment is made and that
is usually the date that starts the 10-year period. This can occur
up to three years after you file your return or later if you did
not file a return or the tax was assessed in exam.
Also, the 10-year period can be suspended or modified
for a variety of reasons, usually initiated by the taxpayer in disputing
the assessment. The collection procedure is complex and occupies
numerous volumes of tax literature. You may want to consult
a specialist in this area if the IRS continues collection efforts
against you.
Your defenses against collection include arguing the
10-year limitation once you get your transcript and, as you've already
discovered, filing an injured-spouse claim. An injured-spouse claim
is made when your tax will be offset against your husband's past-due
taxes or other obligations. Use Form 8379 to make an injured-spouse
claim.
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