A taxpayer earning income in "cash" and not reporting it as taxable income is an example of:

Question

Quizplus · Accepted Answer

Tax evasion refers to the illegal act of intentionally not reporting or underreporting income to avoid paying taxes. This is different from tax avoidance, which is the legal act of using tax planning strategies to minimize tax liability. Conversion involves the illegal use of someone else's property or funds for personal gain, while income shifting is a legal tax planning strategy that involves transferring income from a higher tax bracket taxpayer to a lower tax bracket taxpayer.

A Taxpayer Earning Income in "Cash" and Not Reporting It