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Simple English definitions for legal terms

cash-expenditure method

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A quick definition of cash-expenditure method:

The cash-expenditure method is a way the government checks if people are reporting all their income for taxes. They look at how much money someone spent on things during a certain time and compare it to how much money they said they made during that time. If the spending is more than the reported income, the government will say that the extra money is taxable income.

A more thorough explanation:

The cash-expenditure method is a technique used by the Internal Revenue Service (IRS) to determine a taxpayer's unreported income. This is done by comparing the amount of money spent on goods and services during a specific period with the income reported for that same period. If the amount spent exceeds the reported income, the difference is considered taxable income.

Let's say that John is a freelance graphic designer who reported an income of $50,000 for the year. However, the IRS notices that John spent $70,000 on various expenses during the same year. Using the cash-expenditure method, the IRS can assume that John's unreported income is $20,000 ($70,000 - $50,000), which would be subject to taxation.

Another example could be a small business owner who reports an income of $100,000 for the year but spends $120,000 on business expenses. In this case, the IRS could use the cash-expenditure method to assume that the business owner's unreported income is $20,000 ($120,000 - $100,000).

These examples illustrate how the cash-expenditure method is used to identify unreported income by comparing reported income with the amount of money spent on expenses. It is important for taxpayers to keep accurate records of their expenses to avoid any discrepancies with the IRS.

cash-equivalent doctrine | cash flow

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haha suckers!!!!!!!!!!!!!!!!!
20:38
prolly have a lil family and hobbies what loosers
hahah losers like what? you travel? have a life? not me, i'm reading every line of a contract while my seniors go play golf and enjoy like hahaha suckers
20:40
yea inverse perspective, what is fun is not fun and what is not fun is fun
20:40
you get it.
i wanna be able to travel a ton too
my ex just posted a harry potter related joke i think i dodged a bullet
20:41
Im only going to law school to recruit members for the revolution
20:41
nice where u wanna go? yea bullet dodged fr
can we join even if we're not at ur school
20:44
yeah but youd be in a different chapter
20:44
are we revolting against people who do not use their signal whilst driving?
20:44
We’re revolting against the man, man
20:45
Power does not flow from the sleeve of a judges robe to paraphrase
fuck yeah i'm down
MrThickRopes
20:46
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MrThickRopes
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MrThickRopes
20:46
PUT DA BEAT ON BRUH
20:48
Aight yall can join but I call dibs on being assassinated
MrThickRopes
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MrThickRopes
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MrThickRopes
20:49
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the unction
20:55
just got a DUI while drinkin an NA beer in my car
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someone help is some1 a hoya lowya here?!
MrThickRopes
21:03
Yoooo wtf
21:03
jk ropes but I do got ops fr
MrThickRopes
21:12
Me too bruh they praying on my downfall fr
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bruh i got ppl tryna make my head a brain smoothie
21:19
serve me with some margarita mix and agave sweetener and summ
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