Tax loopholes allow individuals and corporations to do which of the following?

A) Reduce their taxable income legally
B) Register formal complaints to the Internal Revenue Service
C) Pay taxes only on investment income
D) Choose the state to which they will pay taxes
E) Commit crimes without fear of incarceration

Tax Loopholes

Provisions or gaps in tax legislation that allow individuals and corporations to legally reduce their tax liabilities through various means not fully intended by the lawmakers.

Taxable Income

The portion of an individual or entity's income used as the basis for calculating the amount of tax they owe to the government, after allowed deductions and exemptions.