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Dave H's avatar

Assuming the US survives more or less intact and is able to find some common sense, illegally avoided taxes can be collected for quite a long time. The IRS says:

"The IRS generally has 10 years – from the date your tax was assessed – to collect the tax and any associated penalties and interest from you. This time period is called the Collection Statute Expiration Date (CSED).

Your account can include multiple tax assessments, each with their own CSED. Examples may include:

Original tax amounts you owe when you file your federal tax return

Additional taxes you owe when you amend your return

Substitute for return tax balances

Additional tax we find that you owe due to an audit

Civil penalty amounts

Certain penalties and interest"

Note the "each with their own CSED" part. So an audit in year 9 has another 10 years to be collected.

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From Heron w/no rEgrets's avatar

I remember reading some time ago that one of the biggest differences between USA and Italy is that US citizens largely pay the taxes they owe voluntarily. Whereas Italy has a compliance problem, as well as an underground economy that starves the government for revenue. There are other downsides as well... who wants their economy to look more like Italy's? It seems we are headed that direction, and of course wealthy scofflaws love that shizzle. The rules never did apply to them, did they?

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