Neil Danns converted a highly-contentious spot-kick before the balance was redressed by Richard Cresswell courtesy of a similarly baffling decision, which also saw Owen Garvan sent off after arguing vociferously with referee Taylor.
Ten-man Palace went ahead through James Vaughan before Evans, who looked offside, levelled matters again. Daniel Bogdanovic won the third penalty of a thrilling game at Bramall Lane which he subsequently converted, before then being sent off in injury time for a challenge on Vaughan.
Eagles boss Burley said: "I have had a wee chat with the referee because I thought he had a poor performance. You put a report in and an assessor looks at it but it's too late then.
"I thought my team showed spirit and courage and a desire to get something out of it and there were some very encouraging signs. But a decision where the lad (Evans) is three yards offside for their equaliser (at 2-2) cost us.
"I'm really disappointed for the team because they put in so much effort, playing with 10 men for most of the game. When you look at their first penalty and then the offside goal, they were key to the game."
Source: PA
Source: PA