Can you still owe back taxes from 1999?

Answer 1

Absolutely.

Yes, their is something called the "Statute of Limitations" or SOL, where the time for assessment and collection of taxes are restricted. However many things effect hwo the period for assessment (generally 7 years, but different on several types of tax or circumstances). For example, it starts to run from the time a return is filed. So if you didn't file, they remain assessable for forever. The way the time is counted has all types of things...the sending of many notices "tolls" (meaning stops the clock from running) for periods. Assessment is different than collection. The amount (as a percentage) of the underpayment can change things yet again.

So, certainly a worthy aspect to follow...as while the IRS computers are decent about keeping track and generally know if the period is open, they have been wrong. (But understand, that letter they sent 3 years ago to your old but last known address, received or not, that you forgot about, they didn't...and it tolled the SOL).

Obviously, even the way the objection or claim of Statute barred assessment is handled is important, and can lead to other problems. I recommend finding someone with the designation E.A. - which means "enrolled agent" to handle this for you. (Look under tax consultants in the phone book). They are not CPA, who have a more pure accounting view, but rather frequently ex IRS agents...have the right to represent you and are really very savy with the process and getting to a result in situations like this.