In this course we will explore the differences between tax evasion and tax avoidance, learning that tax evasion is not always blatant. Preparer and taxpayer penalties will be detailed, how tax evasion hurts the USA and its citizens (US tax gap), and how much the USA spends to combat tax evasion. Third party reporting is explained, where employers, banks, and other institutions report to the IRS income earned by taxpayers. We will also discuss tips to help identify tax evasion. Excerpts from IRS Circular 230 are included. Lastly, best practices are shared for how preparers and taxpayers can avoid being investigated for tax evasion.