Definition for: Tax Evasion
"Tax evasion" is a crime that occurs when illegal methods, such as failure to report income or falsely reporting deductions, are used to avoid paying the taxes due. Tax "evasion" is different from tax "avoidance." Tax avoidance refers to the use of legally acceptable methods, such as making use of trusts or tax deferred accounts, to lessen tax liability and maximize after-tax income.
