The Internal Revenue Service employs the __________ to deal with the tax evasion of drug traffickers.

Question

Quizplus · Accepted Answer

The Internal Revenue Service (IRS) uses the net worth theory to combat tax evasion by drug traffickers. This method involves calculating the increase in a taxpayer's net worth (assets minus liabilities), plus living expenses, and comparing it to the reported income. If there's a significant discrepancy that the taxpayer cannot explain, it may indicate unreported income from illegal activities like drug trafficking.

The Internal Revenue Service Employs the __________ to Deal with the Tax