It is encouraged by the IRS to report tax evasion. In many an IRS report, tax evasion is a serious problem in many developed countries. Throughout the world, it is punishable by both a financial penalty and a term of imprisonment. Tax evasion is the deliberate attempt by an individual, a corporation, trusts and/or other entities to evade tax payments through illegal means. Those involved intentionally misrepresent the amount of monies earned or may knowingly conceal the true state of their financial affairs. Using any of these methods allows the corporation or individual to declare less income and less profits. It also permits she, he or them to overstate their deductions. The IRS report tax evasion can take several forms. Primary among the different types is offshore tax evasion. This has been a growing problem for years. Companies such as Enron have reportedly had 881 offshore subsidiaries. The IRS report tax evasion zones include the Carribean Islands.