With regard to tax avoidance and tax evasion, which of the following is most accurate?
1. Tax evasion is another term for tax fraud.
2. Tax avoidance and tax evasion are essentially the same activity, both being illegal.
3. The primary distinction in whether an individual or entity has committed tax fraud or simply committed an error is the amounts of taxes owed to the government.
4. Affirmative indicators are deemed more compelling evidence of tax evasion than affirmative acts.