Does the CSED clock stop when you have a payment plan?

The CSED clock is paused (tolled) while a payment plan request is pending review, and while certain other conditions apply such as bankruptcy, offers in compromise under review, or living outside the US. However, once a payment plan is approved and active, the CSED generally continues running. Currently Not Collectible status does not pause the CSED — the clock keeps ticking, which is one reason CNC can be a useful holding strategy.

What happens to tax debt after the CSED expires?

Once the CSED expires, the IRS is legally prohibited from collecting that specific tax debt through levies, garnishments, or liens. The debt does not disappear — it simply becomes uncollectible by the IRS. Any liens filed before the CSED expires must be released by the IRS within 30 days of expiration. However, the IRS can still offset future refunds in some circumstances.

When does the 10-year CSED clock start?

The CSED begins on the date the IRS formally assesses (records) the tax liability — not the date the tax was due or the date you filed. For a return you filed on time, assessment typically happens within weeks of filing. For an audit adjustment, it starts when the additional tax is assessed. For an IRS Substitute for Return, assessment begins after the SFR process is finalized.

What is the Collection Statute Expiration Date (CSED)?