Avoiding tax payments in part or in whole are illegal practices. Both tax avoidance and tax evasion are illegal. Tax avoidance is defined as the legal utilization of the tax regime to one’s own advantage. The goal of tax avoidance is to reduce the amount of tax payable within the context of the law. Tax evasion, on the other hand, is a general term that refers to efforts to avoid paying taxes by is of illegal strategies.

Tax Avoidance and Its Meaning

Tax mitigation is another term that refers to tax avoidance. The original use of the term tax mitigation was undertaken by tax advisors to try and avoid the need to continually use the pejorative term tax avoidance. The term has also been used to promote understanding of tax regulations in some jurisdictions, with the goal of distinguishing tax avoidance foreseen by the legislators, from tax avoidance, which focuses on the exploitation of loopholes in the law.

Some attempts to avoid paying taxes are predominantly innocent and related to individuals interpreting the law in such a way that they believe they are not subject to a particular tax when, in fact, they are. Some individuals and groups have also been known to take a political, social, or ideological stand against taxation. Such individuals are called tax protestors. Anyone who unsuccessfully protests taxes and openly evades tax might be considered an unsuccessful protestor. A successful protestor is one who avoids tax.

The Context of Tax Resistance

Tax resistance is the process of openly refusing to pay taxes and declaring one’s refusal for conscientious reasons, such as a wish not to support the government or some of its activities. Most tax resisters, interestingly, do not argue that the tax laws themselves are illegal but as protestors, they declare their concern that about paying taxes towards policies that they oppose. The decision to evade or resist taxes, however, is not one that can be made lightly. The penalties for not paying taxes are extremely high. They include financial penalties and levies. The IRS has the power to withhold wages and to establish liens against properties owned by anyone who has not paid their taxes.

This article is not meant as a legal advice.

Interested in learning more about tax penalties and tax avoidance? Visit the site of Thorn Law Group, located in Washington, D.C.