Bob Jablonsky & Associates Blog

Frisco TX – IRS Acronyms – RSED, CSED and ASED. What do they actually mean?

by | Dec 23, 2019

When dealing with the IRS, Taxpayer’s who come into our Richardson, TX tax office, often run into IRS jargon that makes no sense to them. They also run into these acronyms when reading and/or listening to our blogs and videos as well as others. Today, we’re going to cover three common acronyms used when dealing with IRS Debt and what each means. These are the CSED, ASED, and RSED.

 

CSED – Collection Statute Expiration Date

Did you know that the IRS legally has 10 years from the date of the assessment of the tax liability to collect the tax for that tax year. The tax assessment is by year and each year assessed has a CSED.

While the CSED is 10 years from the date that the IRS assessed the tax, in certain situations that clock can be stopped and the CSED extended. The CSED is typically suspended when the IRS is not permitted to pursue collection against the Taxpayer and includes the following actions by the Taxpayer:

 

ASED – Assessment Statute Expiration Date

The ASED is the amount of time that the IRS has to close an audit and take action to collect additional tax, penalties and interest after a return is filed. The normal ASED is three years from the date of filing a tax return so the good news, except in extenuating circumstances such as fraud or substantial omissions of income, the IRS does not have an unlimited amount of time to audit your tax return.

As example is that if a tax return was filed on 04/15/2019, the ASED is 04/15/2022. Although this may sound like a fairly long period of time, an audit typically takes several months to complete. Generally, most audit are started within 24 months after a tax return is filed.

 

RSED – Refund Statute of Limitations

Since the IRS has 10 years to collect tax debt, you may think that a taxpayer has up to 10 years to get a refund but that wouldn’t be so. Generally, the RSED for taxpayers is 3 years from the date the return was filed or due to be filed, or two years from the date the Taxpayer paid the taxes due, whichever is later. If you miss those deadlines, the IRS will not keep any refunds due on the return.

 

Do You Need Help?

If you need help with any IRS Audit or Collection issueI’d be happy to talk with you. Please give me a call at (972) 821-1991 or email me at bob@jablonskyandassociates.

 

Bob Jablonsky is the founder of Bob Jablonsky & Associates. He has spent his career helping taxpayers resolve tax issues and get back on track with the IRS. In addition to tax resolution his firm also prepares hundreds of tax returns every year for both individuals and small to mid-sized businesses.

Bob is an IRS Enrolled Agent (EA), which is an elite credential issued by the Internal Revenue Service to professionals who demonstrate special competence in federal tax planning, individual and business tax return preparation, and representation matters. An Enrolled Agent license is the highest credential awarded by the IRS and is recognized across all 50 states. Additionally he is a CMA, or Certified Management Accountant, a designation for financial controllers and CFOs (Chief Financial Officers), as well as an Advanced Certified Quickbooks Pro Advisor.

Get in touch

1900 Jay Ell Drive
Richardson, TX 75081

Bob@jablonskyandassociates.com

(972) 821-1991

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