Bank Deposit Method
Bank Deposit Method means:
an indirect method of calculating a taxpayer's income, used by U.S. Internal Revenue Service (IRS) agents when records are suspect or unavailable. Under this method, the taxpayer's bank deposits and cash expenditures are totaled, nonincome deposits, redeposits, and transfers are eliminated, and any excess of deposits, as adjusted, over reported income is assumed to be unreported income.
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