net worth method

net-worth method. The procedure the Internal Revenue Service uses to determine the taxable income of a taxpayer who does not keep adequate records. • The change in net worth for the year determines the taxpayer’s gross income, after taking into account nontaxable receipts and nondeductible expenses. [Cases: Internal Revenue 4530. C.J.S. Internal Revenue §§ 645, 872.]

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词条贡献者

译者李科，毕业于世界顶级翻译学院，擅长翻译各种与国家安全审查相关的法律文件。