Richard Recently Received $10,000 of Compensation for Some Consulting Work

question 31

Essay

Richard recently received $10,000 of compensation for some consulting work (paid in cash).Jeffrey recently received $10,000 of interest income from City of Dallas bonds.Both taxpayers report no taxable income from these transactions.Is this considered tax avoidance or tax evasion? What is the difference,if any,between the two?

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Definitions:

Cirrhosis

An interstitial inflammation with hardening of the tissues of an organ, especially the liver.

Chronic Disease

A long-lasting condition that can be controlled but not cured, often with significant impacts on daily living.

Esophagus

A collapsible tube from the pharynx to the stomach, through which pass the food and water the body ingests.