net worth method
- An approach employed by the Internal Revenue Service to spot and estimate tax evasion by evaluating the alterations in a taxpayer's net worth
- The Internal Revenue Service uses the net worth method to check for any suspicious changes in the taxpayer's wealth.
- By using the net worth method, authorities were able to detect any inconsistency in an individual's tax records.
- Discrepancies in tax payment can be identified through the application of the net worth method.