Avoiding paying taxes by reducing the amount can be achieved through various legal or illegal means. Illegal means can include shifting income and assets, under-reporting income, and using false deductions. Tax avoidance is unlawful and punishable under law. Tax scammers try to encourage taxpayers to use illegal methods to reduce their tax liability, many times cheating them out of their money.

Using frivolous arguments with the IRS is another method used to avoid paying taxes. Tax scammers and anti-tax protestors convince taxpayers that paying taxes is a choice and can be avoided. Futhermore, many of the frivolous tax protesting arguments have already been taken to court and won by the IRS.

Schemes that involve hiding income and assets from the IRS or creditors not only cheat the IRS, but also fellow taxpayers. Taxpayers can look for legal ways to reduce their tax liability instead of cheating the IRS. Depending on the severity of the tax evasion case, the IRS may charge heavy penalties, or consider criminal prosecution.