Final answer:
Tax avoidance in the U.S. is legal as it involves using approved tax-reducing strategies, whereas tax evasion is illegal. Colonists in the Revolutionary Era were not against taxation per se, but they were concerned with how tax revenues were utilized and the absence of representation in the British Parliament.
Step-by-step explanation:
The whether both tax avoidance and tax evasion are illegal in the U.S. is B) False. Tax avoidance is the legitimate minimizing of taxes, using methods approved by the IRS. Tax evasion, on the other hand, is the illegal practice of not paying taxes owed by falsifying information to reduce tax liabilities.
When discussing the colonists' position on taxation, the claim that they did not necessarily object to the principle of taxation, but rather how the tax money would be applied is True. The colonists were more concerned with the lack of representation in Parliament when taxes were being decided, leading to the famous slogan 'No taxation without representation'. This illustrates the significance of the concept of actual versus virtual representation during that era.