Tax evasion is the deliberate misrepresentation and/or concealment of the actual financial state of affairs. This is true across all American states and in other countries. Tax evasion is a serious problem among large corporations. It cannot also, however, be found among small businesses and individuals. It is tax evasion if you pay in cash for a service or item to escape sales taxes. It is tax evasion if you purchase an item over the internet without paying the appropriate state or federal tax. A small business may neglect to file all sales tax or employment wages taxes. This is tax evasion. On the largest scale, tax evasion encompasses off shore tax havens or tax evasion zones. This is the higher profile of tax evasion. Offshore tax evasion involves complicated book keeping and intricate and interwoven corporate structures. It means financing within an offshore country as well as the set up of what are termed "shell" companies. The IRS and other tax agencies are in charge of enforcing tax compliance of the tax regulations. In the past years they have tried to crackdown on offshore tax evasion crimes. Some states also employ amnesty tactics. They reduce the penalties, the interest and the amounts of taxes owed for tax evasion to encourage complete disclosure of the taxpayers at fault.