If tax is avoided, how would the general anti-avoidance rule affect the transactions?

Over the past two years, your client, a lawyer in sole practice, has developed several software packages for the preparation of legal contracts.  At a recent small-business seminar, your client learned that she could pay her spouse and children a salary.  By doing so, your client’s total tax paid as a family unit would drop substantially.

REQUIRED:  If tax is avoided, how would the general anti-avoidance rule affect the transactions?

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