Tax avoidance and tax fraud are sometimes used interchangeably. However, these two terms have two different meanings in terms of tax law.

Tax avoidance is the use of legal means of avoiding paying taxes. These legal means include legal tax avoidance strategies such as changing the structure of an entity or setting up a trust.

Tax fraud, on the other hand, is the use of illegal means to avoid the payment of taxes due to government entities. Tax fraud occurs in many different forms. If a company employment suspects that his or her company is committing tax fraud, that person should report the fraud to the proper authorities.

If you or anyone has questions about tax fraud, contact the tax fraud attorneys of Tycko & Zavareei, LLP, at 202-973-0900.