What is the difference between tax avoidance and tax evasion?

Tax avoidance and tax evasion are two distinct strategies that businesses in Kansas may use to reduce their taxes. Tax avoidance is a legal approach, such as taking advantage of tax deductions and credits, to reduce the amount of taxes your business has to pay. A business can also take advantage of tax deferment, which allows the business to delay paying taxes until a later date. Tax evasion, on the other hand, is an illegal approach to avoiding taxes. This includes withholding information from the IRS to minimize the amount of taxes owed, or underreporting profits or income in order to reduce the taxes a business has to pay. Tax avoidance can be beneficial for businesses in Kansas that utilize it in a legal and ethical manner. However, tax evasion is a criminal offense in the state of Kansas and can lead to hefty fines, prison time, and other penalties if a business is found guilty. To avoid criminal prosecution, businesses should always use legitimate and legal means to reduce their taxes. Engaging in tax avoidance is a more viable option for businesses than attempting to evade taxes as it falls within the bounds of the law.

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What is the difference between tax avoidance and tax evasion?

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