Tax Evasion v/s Tax Avoidance: What is the difference?

Tax avoidance is a method of reducing tax liability within the legal boundaries by exploiting loopholes in the tax laws. Tax Evasion refers to the illegal act of avoiding paying taxes by means of deception or concealment.

Penalty for Failure to File Taxes

Penalties are calculated automatically by the IRS and added to any tax owed. The IRS will send you a notice detailing the amount of the penalty and the reason for it.