- Dec 2013
- Beware of watermelons
Is the Difference Between Tax Avoidance and Tax Evasion?
The terms "tax avoidance" and "tax evasion" are often used interchangeably, but they are very different concepts. Basically, tax avoidance is legal, while tax evasion is not.
Businesses get into trouble with the IRS when they intentionally evade taxes. But your business can avoid paying taxes, and your tax preparer can help you do that.
What Is Tax Avoidance?
Tax avoidance is the legitimate minimizing of taxes, using methods approved by the IRS. Businesses avoid taxes by taking all legitimate deductions and by sheltering income from taxes by setting up employee retirement plans and other means, all legal and under the Internal Revenue Code or state tax codes.
There seems to be a lot of confusion here by the comrades and useful idiots on this subject so before anymore lies are told and protected maybe we should get this out in the open.