McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 20

Jayanna, an advertising consultant, is contemplating instructing some of her clients to pay her in cash so that she does not have to report the income on her tax return.Use an available tax service to identify the three basic elements of tax evasion and penalties associated with tax evasion.Write a memo to Jayanna explaining tax evasion and the risks associated with her actions.