Which of the following is considered intentional wrongdoing to evade a tax?

Fraud is defined as intentional wrongdoing that is executed with the purpose of evading taxes. This can involve deliberately misrepresenting income, inflating deductions, or hiding money in offshore accounts to reduce tax liability unlawfully. Tax fraud is a serious offense that can lead to penalties, fines, and even imprisonment.

The other options, while related to tax issues, do not encompass the element of intentional wrongdoing needed to classify as fraud. Understatement typically refers to accurately reporting income or deductions but in a less-than-optimal way, while negligence involves carelessness or failure to take reasonable steps regarding tax obligations without the intent to deceive. Misstatement is similar to understatement in that it can occur occasionally without malice and does not inherently involve the level of intent required for fraudulent activities.

Consequently, the key distinction lies in the intentional nature of fraud, making it the correct choice in identifying actions meant to evade taxes knowingly.