Tax evasion usually involves certain elements. Which of the following are elements necessary for tax evasion to occur?
I.Nondisclosure of the relevant facts on the taxpayer's tax return.
II.Underpayment of tax.
III.Avoiding detection by the IRS.
IV.Willfulness on the part of the taxpayer.
V.An affirmative act by the taxpayer to misrepresent.

Question

Tax evasion usually involves certain elements. Which of the following are elements necessary for tax evasion to occur?
I.Nondisclosure of the relevant facts on the taxpayer's tax return.
II.Underpayment of tax.
III.Avoiding detection by the IRS.
IV.Willfulness on the part of the taxpayer.
V.An affirmative act by the taxpayer to misrepresent.
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Quizplus · Accepted Answer

All the statements except III are necessary for tax evasion to occur. Avoiding detection by the IRS may not always be a necessary element for tax evasion to take place, therefore statement III is incorrect. The other statements are necessary for the act of tax evasion, including nondisclosure of facts, underpayment of taxes, willfulness on the taxpayer's part, and an affirmative act to intentionally misrepresent taxes.

Tax Evasion Usually Involves Certain Elements