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Chapter 3 of the text addresses two terms: tax evasion and tax avoidance. Provide the following: 1) Define each term in your own words (do
Chapter 3 of the text addresses two terms: "tax evasion" and "tax avoidance". Provide the following: 1) Define each term in your own words (do not copy out of the text). 2) Does either of these involve an illegal activity and if so, explain why it is illegal. 3) Consider the examples given below and state, for each, if it is an example of tax evasion or tax avoidance. A) Jellybean Rabbit has earned $10,000 for a job he completed last week, the last week of December. He received the check December 28th but is not going to deposit it until after the first of January because he doesn't want to include that income on his tax return for the current year. Evasion or avoidance and why? B) Sammie Skunk contributes to many charitable organizations throughout the year. It is now December 23rd, and he is trying to consider whether he will make a second contribution to the "Make Better Scents" organization, a 50103 charitable organization. The amount he will give is $5,000. He writes the check and sends it on December 24th. Evasion or Avoidance and why? C) Dollie Deer worked a full-time and a part-time job. She will receive a W-2 reporting her income for her full-time job, which she will report on her tax return ($50,000). For her part-time job she is paid in cash, no withholding is deducted, and the individual for whom she works told her he is not reporting it to the IRS. Dollie has decided she will not report those earnings ($10,000) on her tax return. Evasion or Avoidance and why
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