Internal Revenue Manual
Table of Contents
Part 4 Examining Process
Chapter 10. Examination of Returns
Exhibit 4.10.4-9
The Bank Deposits and Cash Expenditures Method: Example of Computation of Gross Receipts.
Bank Deposits and Cash Expenditures Method
Example
1. Total reconciled bank deposits $151,500
Less:
2. Nontaxable receipts deposited ($35,000)
3. Net deposits resulting from taxable receipts $116,500
There are taxable receipts and there are nontaxable receipts and it is not the responsibility of the IRS to tell us which are taxable and which are not. The people write the laws, the people pass the laws, therefore, it is the responsibility of we the people to know the laws we write and pass via our representatives in DC. My guess is you have never been through an audit. Well, I have, more than once.
Why are you babbling about the Internal Revenue Manual? It means nothing in court.
Why are you posting useless links about an irrelevant case?
Audits? Of course you’re wrong. The last one covered about 5 mill of gross revenue for one year. Result. No change, not even a penny.
The IRS is well aware of PH and his nonsense, not to mention his followers and the kind of junk they put on their returns. They have pursued many of them and won every single time. You better hope that you’re never audited again.