17. Tax Planning and Tax Evasion are very similar ideas. Tax Planning is tax avoidance that is legal under the statutes. Tax Evasion is elimination of tax thru illegal or non supported documentation. Identify whether the following is tax evasion or tax avoidance. a. Sandy asks the vendor to pay them in cash so that there is no record of transaction. b. Trevor decides to pay his charitable contribution due in February in December so he gets a deduction in the current year. c. Sarah is cash method taxpayer she pays and mails her bills on December 31st d. Mike tells his customers not to pay him until next year. 18. As discussed the term Gross Income includes all increases on wealth as income. There are however instances where the Internal Revenue Code has allowed the exclusion of income for a variety of reasons. On the list of potential income items below identify whether they should be excluded from income or not. a. Interest from State \& Local Bonds b. Embezzled funds c. Child Support Payments d. Gifts