Coming Out of the Dark Episode 5: The Clock Nobody's Watching §6501, Nonfilers, and the Disclosure Decision

Most nonfilers can name a number when asked how far back the IRS can reach. That number rarely tells the full story. Under IRC §6501, the assessment statute of limitations only begins once a valid return has been filed. Without one, the clock never starts.

This session is the fifth installment in ALFi's Coming Out of the Dark series, turning to a file every domestic tax practitioner sees often: the taxpayer who never filed.

What the Session Covers

Matt Eddleman, EA, covers the three-year assessment period, when it fails to start, and the Beard test for what qualifies as a return. He then separates that legal rule from Policy Statement 5-133, the IRS's internal six-year enforcement guideline, which reflects administrative practice rather than law.

The session connects this framework to the disclosure-path decision: quiet filing, the Streamlined Filing Compliance Procedures, or the Voluntary Disclosure Practice. A case study ties the analysis together, and a closing segment addresses international exceptions that can still surface in a domestic file.

What Attendees Will Take Away

• Evaluating nonfiler exposure under IRC §6501
• Separating the legal rule from Policy Statement 5-133
• Applying the Beard test to filed documents
• Matching exposure to the right disclosure path

Continuing Education

CPE and CE credit available for attorneys, CPAs, enrolled agents, accountants, and C-suite professionals in domestic tax practice.