What is the statute of limitations on tax bills?

Photo: pixabay.com

Q. I received a notice from a collection agency that is on the list of agencies contracted by the City of Philadelphia, demanding payment on city income taxes that were ostensibly due on 2008 earnings. The principal is $278, the penalty is $597.75 and the interest is $300.13, for a total of $1,175.88. The notice does include a payment coupon with instructions to make the check payable to “City of Philadelphia” as opposed to a check payable to the collection agency, and to mail to a P.O. Box in Philadelphia. Can they go back that far in time?
— Unsure

A. Getting a collection notice from anyone can be disconcerting.

This will take a bit more research on your part.

We took your question to Ken Bagner, a certified public accountant with CLA in Livingston.

He cited the Philadelphia Department of Revenue website, which says:

“The general statute of limitations for collecting taxes is six years, and the general limitation for an assessment of tax is three years from the latter of the due date for the filing of a tax return or the actual filing date of the tax return.”

But, he noted, the specific facts of your case are important.

You should contact the tax department to see what else you can learn about this supposed debt.

If you can’t get answers, you should speak to a tax preparer who can look at your case and help you contact the taxing authorities.

Email your questions to .

This story was originally published on April 3, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.