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We’ve consulted on over $16 billion in tax debt since 2007 - See what real people are saying about how we changed their life

Tax Audit Penalty Can Add Insult to Financial Injury.

If you find yourself facing a false tax return penalty, we’re here to help you cushion the blow.

20%

of your tax liability is due if you incur an IRS negligence penalty.

75%

of your tax liability is the tax fraud punishment you may have to pay.

$250,000

is a penalty you could incur if you’re found guilty of tax evasion (in addition to jail time).

Why Choose Tax Defense Network for Help With Tax Audit Penalties?

A+ rating by the Better Business Bureau

Work with trusted professionals who care about bringing you peace of mind.

Licensed tax professionals

With a decade in business, our extensive expertise is at your service.

Free initial consultation

Commitment-free, no-cost consultation with a tax professional to get started.

Easy, affordable, and customized to you

Personalized solutions that fit your life and your budget.

What We Do

Consultation

During your free, no-commitment consultation, we will discuss your audit and tax audit penalties to get a good understanding of your current situation.

Investigation

We investigate the laws and regulations around your penalties and determine what is the best path to resolution for you.

Resolution

We’ll work with the IRS on your behalf to achieve a resolution that simultaneously works for you and makes you compliant. Our experienced tax professionals will keep you informed every step of the way and are always just a phone call or email away.

“This company is wonderful! We had over $200k of tax debt and penalties. It was completely eliminated, and very quickly. Our advisor was professional, friendly, and answered all of questions. He responded to our calls quickly and offered great advice. We will recommend them to everyone!”

- David V.

Common Questions About Tax Audit Penalties

Q: Can you go to jail for not paying taxes?
You can’t technically go to jail for unpaid taxes. However, if you’re found guilty of lying on your tax return or not filing your taxes, you can face jailtime.
Q: What happens if you fail an IRS audit?
If the IRS finds issues while they’re auditing you, they will propose changes to your tax return. If you accept them, you’ll have to pay any charges required, including any tax audit penalties.
Q: What are the different types of tax audit penalties?

There are accuracy-related tax audit penalties, which are imposed if you filed a seriously inaccurate return. These penalties include:

  • IRS negligence penalty: Imposed if your negligence or disregard of the rules or regulations caused the underpayment.
  • Substantial Understatement Penalty: Imposed if you understated your income by $5,000 or 10 percent, whichever is greater.
  • Substantial misstatement of the value of property:Imposed if you either overvalued donated property or undervalued depreciating property.
  • Substantial overstatement of pension liabilities: Imposed if you overstated your pension liabilities by at least 200 percent (unless the overstatement is under $1,000).
  • Substantial understatement of a gift or estate: Imposed if you state that the value of a any property claimed on a gift or estate tax return is 40 percent or less of its actual market value.
  • Understatement related to reportable transaction: Imposed if you understate tax liabilities because of a tax shelter or tax avoidance transaction that is disclosed.

You could face a tax fraud punishment if the IRS can prove you filed late, which can include hefty fines and up to 3 years in prison. There are also tax evasion penalties that you could face if the IRS finds that you have willfully concealed or misrepresented financial resources and assets to avoid paying taxes. Tax evasion punishments include 5 years in prison and up to $250,000 in fines for individuals.

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