FTB vs. IRS Statute of Limitations on Tax Collection
Last reviewed by Calculus Tax in-house Settlement Officer
The IRS generally has 10 years from assessment to collect a tax. The California Franchise Tax Board (FTB) generally has 20 years, counted from when the latest liability for that tax year became due and payable, and later fees can reset that clock. Both deadlines can be paused, and the events that pause them are not the same.
Quick answer
The IRS generally has 10 years from assessment to collect a tax. The California FTB generally has 20 years from when the latest liability for that year became due, under R&TC 19255, and later fees can reset its clock. Both pause for events like bankruptcy, and the FTB also pauses its clock during payment plans.
| IRS collection period | Generally 10 years from assessment (IRC 6502) |
|---|---|
| FTB collection period | Generally 20 years (R&TC 19255) |
| FTB clock starts | When the latest liability for the tax year becomes due and payable |
| FTB clock resets | Later items such as collection cost, lien, or installment agreement fees |
| FTB tolling events | Bankruptcy, payment plans, combat zone, child support collections, disasters, probate claims, litigation |
| IRS suspensions | Pending payment plan request, rejected or terminated plan (30 days), appeals, pending offer, CDP hearing, bankruptcy |
The IRS Rule: Generally 10 Years
Under IRC section 6502, the IRS generally has 10 years from the date of assessment to collect a tax. After that collection statute expiration date (CSED), the IRS generally can no longer collect. See the IRS collection statute guide for how the date is figured.
What Pauses the IRS Clock
The IRS collection period is suspended while an installment agreement request is pending, for 30 days after a request is rejected or an agreement is terminated, and while an appeal of either is pending. A pending offer in compromise, a Collection Due Process hearing, and bankruptcy also pause it. Being on an approved IRS payment plan does not by itself stop the clock.
The California Rule: Generally 20 Years
Per the FTB, it has 20 years to collect a liability under California Revenue and Taxation Code section 19255. The 20 years generally run from the date the latest tax liability for that tax year becomes due and payable.
Why the FTB Clock Can Reset
The FTB lists items that can count as the latest liability, including a collection cost recovery fee, a lien fee, an installment agreement fee, and a final notice of proposed assessment. In the FTB's own example, a fee assessed years later resets the 20-year period. Some penalties, such as the bad check penalty, have their own statute.
What Pauses the FTB Clock
The FTB's 20-year period is suspended when it cannot collect because of bankruptcy, payment plans, a service member's deployment in a combat zone, child support collections, a federally declared disaster, terrorist attack, or military action, an FTB probate claim, or pending litigation. Unlike the IRS, the FTB lists payment plans themselves as tolling events.
Why This Difference Matters
Waiting out a debt is rarely a plan, and it is especially unrealistic with the FTB, whose window is twice as long and can be extended by later fees and payment plans. For California debt, a realistic FTB payment plan or an FTB offer in compromise is usually the better path.
Checking Your Dates
For the IRS, account transcripts show assessment dates and events that suspend collection; they are available in your IRS Online Account for the current and nine prior years. For the FTB, check your balance and account history in MyFTB. Both agencies' dates are calculated per tax year, so each year can have a different deadline.
Help Reviewing Your Collection Deadlines
Calculus Tax pulls your IRS transcripts, analyzes them with Brevitax, and reviews your FTB account so our in-house Settlement Officer can tell you which years are close to expiring and which resolution fits each agency. See California FTB tax relief or contact us.
Frequently Asked Questions
How long does the IRS have to collect back taxes?
Generally 10 years from the date of assessment, under IRC section 6502, though certain events pause the clock.
How long does the California FTB have to collect?
Generally 20 years, under R&TC section 19255, from when the latest liability for the tax year became due and payable.
Can the FTB's 20-year clock restart?
Yes. The FTB says later items such as a collection cost recovery fee, lien fee, or installment agreement fee can reset it.
Does a payment plan pause the statute?
For the FTB, yes: payment plans are listed as a tolling event. For the IRS, the clock is paused while a payment plan request is pending, but not simply because an approved plan is in place.
Is it smart to wait out the statute?
Usually not. Interest and penalties grow, collection can continue until the deadline, and many events can extend it, especially for the FTB.
How do I find my collection deadline?
Review IRS account transcripts for assessment dates and suspensions, and your MyFTB account for California. A professional can calculate each year's date.
Sources
What can change the answer
Notice type, issue date, filing history, account status, deadlines, and current agency procedures can change the available next step. Bring the complete notice and account records to a qualified review.
Tax rules and collection procedures can change and depend on the account. Federal claims should be checked against current IRS guidance; California claims should be checked against the California Franchise Tax Board. See our editorial methodology for sourcing and update standards.
Results depend on your facts and on IRS or state decisions. Calculus Tax, Inc. is not affiliated with the IRS or any government agency.
When professional help may make sense
Calculus Tax, Inc. can review notices, organize financial information, explain available paths, and communicate with the IRS or California agencies when representation is appropriate. The right next step depends on your facts, deadlines, filing history, and ability to pay.
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