Lets say that 11 years ago you transferred a piece of property to your spouse, and you didn’t receive equal value in return. Depending upon the circumstances you might have made a fraudulent transfer aka fraudulent conveyance. However, that was over 10 years ago and so surely the statute of limitations has run on your transaction. Hasn’t it?
Well it depends. For state law purposes the statute of limitations is typically about 4 or 6 years and so you would be safe.
However as a case that just came out today highlights, the IRS isn’t bound by the state’s statute of limitations. Rather the IRS statute of limitation is the time period to collect on taxes, 10 years. Since the IRS hit the taxpayer with a tax bill less than 10 years ago, the IRS is able to now go after his spouse for the property that was transferred way back when. The case is below.
If you owe, or are about to owe, the IRS a bunch of money, the IRS has a number of programs that will help you resolve your tax debt. Don’t stick your head in the sand, call a tax attorney, tax lawyer and ask for help.