net worth method

noun

net worth meth·​od
: a method used by the Internal Revenue Service to detect and calculate tax evasion in which the change in a taxpayer's net worth is compared to reported taxable income taking into account living expenses, allowable deductions and exemptions, and nontaxable income

Dictionary Entries Near net worth method

Cite this Entry

“Net worth method.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/net%20worth%20method. Accessed 27 Jan. 2023.

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