Although both terms, tax avoidance and tax evasion, are relevant to the process of filing taxes, one stands for legal activity while the other stands for illegal activity. One can help you to legally save on taxes while the other can help you to participate in the illegal actions of avoiding taxes altogether.
Tax avoidance, describing the act of using legal means to reduce the amount owed for taxes, is fully legal and is often utilized by experienced tax attorneys and accountants for their clients. Tax evasion, on the other hand, describes the illegals efforts used by individuals to avoid paying the taxes required by the state and federal governement.
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