An original return balance, an amended-return increase, an audit assessment, an SFR assessment, and certain civil penalties can each create a separate collection date. Payments do not necessarily apply to the oldest clock without reviewing the account application.
The CSED is different from the time the IRS has to assess tax and the time a taxpayer has to claim a refund. The three statutes answer different questions and can overlap in one case.
| Event | General CSED effect | What to document |
|---|---|---|
| Substitute for Return assessment | Starts a collection period for the assessed SFR balance | Assessment date and any later reduction or additional assessment |
| Offer in Compromise pending | Suspends the period while pending, during a timely appeal, and generally 30 days after rejection | Receipt, return, rejection, withdrawal, and appeal dates |
| Installment-agreement request or appeal | Can suspend the period while pending and during specified rejection, termination, and appeal windows | Request, acceptance, rejection, default, and appeal dates |
| Bankruptcy | Suspends collection while the automatic stay applies and adds statutory time afterward | Petition, discharge or dismissal, and stay dates |
| Living outside the United States | Continuous residence abroad for six months or more generally suspends the period and can add at least six months after return | Travel and residency dates |
Key Insight
Do not sign a date extension casually
In limited situations the IRS may request an agreement to extend collection time. Review the transcript, remaining CSED, alternatives, and legal effect before signing any waiver.