No plagerism and need by 1130 CST 400-500 words REQUIRED
Primary Task Response:Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
The terms tax avoidanceand tax evasion or tax fraud have profoundly different meanings but are sometimes confused with each other. Complete the following:
- Research a case in which a company has committed tax fraud or evasion and summarize the details of the case including the IRS’s position, findings and consequences.
- Might this case be interpreted as a case of tax avoidance instead of tax fraud? Be sure to fully explain your position and reasoning.
Solution Preview
Ernst & Young Tax Fraud
Tax fraud cases form a significant part of the American tax management system, largely due to cases in which individual make extensive efforts to reduce the chances of paying taxes to the government. Consequently, there have been cases in which individuals have faced significant financial penalties due to their decision to minimize the tax liabilities in means considered unethical. This explains the concept of tax avoidance, one of the primary issue with which the Internal Revenue Service (IRS) deals with every year. Reducing the tax liability would imply less liabilities for the individual, which in turn relieves the individuals involved in the activities.
The tax firm Ernst & Young recently faced legal challenges with the IRS following the discovery that between 1999 and 2004, the company had helped some of its clients escape paying tax revenue that totaled to about $2billion (Novack, 2013).
(626 words)