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 1 Dec. 2024.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
Share