What is the difference between tax evasion and tax avoidance?

What is the difference between tax evasion and tax avoidance?

Tax evasion is the use of illegal methods of hiding income or important, relevant information from the IRS or some other tax authority, while tax avoidance is the use of legal methods of reducing taxable income or tax owed. Ultimately, tax evasion is lying, while tax avoidance is (legal) hiding, and you can get into legal trouble for tax evasion.