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6.

Duff is really interested in decreasing his tax liability, and by 


his very nature he is somewhat aggressive. A friend of a 


friend told him that cash transactions are more difficult for the

IRS to identify and, thus, tax. Duff is contemplating using this 


"strategy" of not reporting cash collected in his business to 


minimize his tax liability. Is this tax planning? What are the 


risks with this strategy?


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