Using the legend provided, classify each of the following statements:

Using the legend provided, classify each of the following statements:

Legend ____

A = Tax avoidance

E = Tax evasion

N = Neither

a. Sue writes a $707 check for a charitable contribution on December 28, 2015, but does not mail the check to the charitable organization until January 10, 2016. She takes a deduction in 2015.

b. Sam decides not to report interest income from a bank because the amount is only $19.75.

c. Harry pays property taxes on his home in December 2015 rather than waiting until February 2016.

d. Variet switches her investments from taxable corporate bonds to tax-exempt municipal bonds.

e. Mel encourages his mother to save most of her Social Security benefits so that he will be able to claim her as a dependent.

 

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