Is Tax Avoidance the Same as Tax Evasion?
It can be quite easy to confuse the two terms together as, in meaning, they are already quite similar. High taxes can cause a strain to many working class people who are already struggling to make ends meet as it is and so tax avoidance may be an option that you might want to look into.
But is it legal?
The short answer is that yes, it is. Tax avoidance is the perfectly legal method that takes financial planning as well as circumstantial reasoning into account in order to pay less taxes because you are qualified for it. This can apply to disabled people, people with multiple children, et cetera. This then helps them in their pursuit of achieving financial stability. Tax evasion, however, is an entirely different ballgame altogether – though the difference between the two rests between a very thin line.
According to the website of the lawyers with Kohler Hart Powell, SC, tax evasion is when an individual or party falsifies reports or records in order to receive exemptions or deductions from taxes when they are not eligible for it. This can happen due to falsified income reports or claiming a personal expense as a business expense. When this happens, there is fraudulence involved, which is why it taken as a federal offense by the Internal Revenue Service (IRS).
If an IRS agent contacts you with regard to tax evasion, it is recommended that you first contact an experienced legal professional. It is perfectly legal for you to exercise your right to remain silent as well as your right to first consult with your legal counsel before you present any evidence.
This is because you, as a civilian, may not understand the due legal process that is followed and may accidentally incriminate yourself without meaning to. The simplest and most seemingly mundane questions could bring forth accusations against you. As tempting as it may be to simply talk your way out of this and stand your ground as innocent, it is recommended that you have someone in your playing field who knows their way around, so to speak.