Final answer:
Paying the least amount of taxes owed is not tax fraud; it's a legal way of tax planning called tax avoidance. Tax fraud involves illegal practices such as overstating deductions and keeping false financial records.
Step-by-step explanation:
Tax fraud is the illegal act of intentionally evading or avoiding paying taxes. In this case, the question asks which option is not a way individuals can commit tax fraud. Option c) Paying the least amount of taxes the individual owes is not a way to commit tax fraud because it is not illegal to pay the minimum amount of taxes owed. However, options a) overstating the amount of deductions, b) keeping 2 sets of books, and d) making false entries in books and records are all methods that individuals can use to commit tax fraud.
The option that is not a way that individuals can commit tax fraud is (c) paying the least amount of taxes the individual owes. This choice represents a lawful strategy for minimizing tax liability, often called tax avoidance, which is legal and different from tax evasion or fraud. Tax fraud typically involves intentionally deceiving the tax authorities to reduce one's tax burden illegally. Examples of actions that would constitute tax fraud include (a) overstating the amount of deductions, (b) keeping 2 sets of books to conceal income, and (d) making false entries in books and records.