1a. What is Tax Avoidance? 1b. Name two examples of Tax Avoidance Example~ Increase Retirement Savings: Putting aside money for your retirement is an effective tax avoidance tool. Joining an employer-sponsored plan if possible. These plans frequently take from your pre-tax earnings and are withdrawn directly from your pay check. No employer plan no problem. You can open and IRA account and, within certain limits, your contributions are tax deductible. 2a. What is Tax Evasion? 2b. Name two examples or court cases of Tax Evasion Wesley Snipes Case Mr. Snipes received a three-year prison sentence for willfully failing to file I.R.S. tax returns for six consecutive years, avoiding $7 million in taxes. According to Snipe, he was following the advice of his advisors that legally he didn't have to pay taxes.