Q&A of the Week May 10, 2023

Question:

What is the Six-Year Rule?

Answer:

The Six-Year Rule is for repayment of tax liability. In 2012, this rule was changed from five years to six years.

The Six-Year Rule allows for six years for payment of living expenses that exceed the Collection Financial Standards. (if you are able, will you please link "Collection Financial Standards" to the 5/3 Q&A?)

To determine eligibility for the Six-Year Rule, taxpayers have to provide financial information. It is not necessary to provide substantiation of reasonable expenses.