The difference is very important because tax avoidance is completely legal and encouraged. Tax evasion is illegal.

Your statement below is false as written:

>the IRS pays as a bounty for intelligence on tax avoidance scheme

From the IRS' website: [1]

"The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe"

You can't fail to pay a tax that you legally avoid.

[1] https://www.irs.gov/uac/whistleblower-informant-award

Here is some more information on the difference between tax avoidance and tax evasion: http://www.investopedia.com/video/play/tax-avoidance-vs-tax-...