1. Differentiate between tax evasion and tax avoidance. 2. Explain each of the following strategies for reducing current taxes: (a) maximizing deductions, (b) income shifting, (c) tax-free income, and...

1. Differentiate between tax evasion and tax avoidance.

2. Explain each of the following strategies for reducing current taxes: (a) maximizing deductions, (b) income shifting, (c) tax-free income, and (d) tax-deferred income.

3. What are the advantages of using tax preparation software?