Tax avoidance is perfectly legal and encouraged by the IRS, but tax evasion is against the law. Classify the tactics below as examples of Tax Avoidance or Tax Evasion by clicking on the correct answer. To assess your answers, click the Check My Answers button at the bottom of the page.
1) Keeping a log of business expenses
2) Ignoring earnings from lawn mowing
3) Not reporting interest earned on savings account
4) Keeping a log of contributions to charity
5) Not reporting tips
6) Claiming your dependents as tax deductions