Each American citizen must pay taxes. Your annual income will determine how much tax you owe. This amount may vary from year to year. People sometimes forget to pay their taxes. However, they still owe the government money. You may owe back taxes if you haven’t paid taxes for any year in the past.
California Taxes: Time Limits
California has its own tax laws, apart from those of the IRS. Taxes can be collected at both the federal and state levels. There are deadlines and time limits for when the state can begin collecting back taxes. You may not be required to pay any additional taxes if the state has not collected all of your back taxes by the deadline.
The state has 20 years to collect your taxes if they are due under § 19255 of the California Revenue and Taxation Code. In general, back taxes are due in full once they have been assessed. Many people find it difficult to pay large amounts of back taxes at once.
The state government might allow you to set up payment plans if you are unable to pay all your back taxes at once. Many payment plans have their own deadlines that are different from the 20 year statute of limitations. You could be charged additional fees and penalties if you miss the payment plan deadline. A payment plan must be fully paid within three years, according to § 19008 of the California Revenue and Taxation Code. These plans can be modified or changed at any time, so your experience could differ.
The statutes of limitations or deadlines can be put on hold or suspended under certain conditions. This adds more time to your clock. Let’s say the state files a civil suit against you or files a probate court action. The deadline for the civil action against you will be extended to the time that the judgment is finalized or is unenforceable under other laws applicable to civil judgments.
This article was written by Alla Tenina. Alla is one of the best tax attorneys in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. Click here for more information. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.
