CFE – Law — Question 6

All of the following are common legal defenses for tax evasion EXCEPT:

Answer options

• A. Mental illness of the taxpayer
• B. The actions were tax avoidance, not tax evasion
• C. Death of the taxpayer
• D. The taxpayer's reliance on an attorney or accountant

Correct answer: C

Explanation

The death of the taxpayer (option C) does not serve as a legal defense for tax evasion, as the legal proceedings would typically cease with the taxpayer's death. In contrast, mental illness, distinguishing between tax avoidance and evasion, and reliance on professional advice can all potentially serve as defenses in certain circumstances.