Responsibility Policy for Interest, Penalties & Audits
TaxDen, LLC (“TaxDen”)
This policy explains what TaxDen is responsible for—and what we are not responsible for—regarding IRS or state notices, audits, penalties, or interest. By engaging our services, you acknowledge and agree to the terms outlined below.
1. Client Responsibility for Information Provided
TaxDen prepares tax returns based solely on the information you provide. You are fully responsible for ensuring that all information, documents, and disclosures supplied to us are:
- Complete
- Accurate
- Up to date
- Provided in a timely manner
We are not liable for penalties, interest, or audit findings caused by:
- Missing forms or income (W-2, 1099, K-1, etc.)
- Incorrect or incomplete information provided by you
- Failure to provide documents by deadlines
- Unreported cash or outside income
TaxDen relies on the accuracy of the information you supply, and cannot detect omissions or errors in information not provided.
2. Responsibility for IRS or State Penalties & Interest
TaxDen is not responsible for any IRS or state interest or penalties assessed as a result of:
- Late filing due to missing or delayed information
- Late payment of taxes owed
- Underpayment of taxes
- Incorrect information provided to us
- Failure to review your return before filing
Interest and penalties are charges assessed directly by tax authorities, and cannot be refunded or reimbursed by TaxDen.
3. Responsibility for Errors Made by TaxDen
If TaxDen makes a clear clerical, mathematical, or preparation error, we will:
- Prepare the correction or amended return at no additional preparation fee for the affected item
However, unless required by law, TaxDen does not reimburse or pay:
- IRS penalties
- IRS interest
- State penalties or interest
Even when an error is ours, interest and penalties are still assessed by the IRS based on tax law—not by TaxDen—and cannot be waived or refunded by us.
4. Audit Support Services
Your tax preparation fee does not include audit representation or audit defense unless explicitly stated in writing. Audit support is a separate service that may include:
- Responding to IRS or state notices
- Preparing additional documentation
- Communicating with tax authorities
- Representing you during an audit
If you receive an IRS or state notice related to a return we prepared:
- Notify us immediately
- Provide a copy of the notice
- We will review the notice and advise on next steps
Fees for audit support or notice responses will be quoted before work begins.
5. Notification of IRS or State Notices
You are responsible for promptly informing TaxDen of any IRS or state letters you receive. Failure to notify us may result in missed deadlines or increased penalties. TaxDen is not responsible for penalties resulting from notices that were:
- Not provided to us
- Provided after the response deadline
- Provided with insufficient time for proper review
6. Estimated Taxes & Underpayment Penalties
TaxDen provides estimated tax calculations upon request or as part of your tax engagement. However, you are responsible for:
- Making timely estimated tax payments
- Adjusting payments if your income changes during the year
We are not responsible for underpayment penalties if:
- Your income increases during the year
- You fail to make estimated payments
- You fail to request updated estimates
7. Changes in Tax Law or IRS Adjustments
Tax laws change frequently and unpredictably. TaxDen is not responsible for:
- Penalties or interest arising from retroactive IRS or state law changes
- IRS modifications, math error notices, or automatic adjustments
We will assist you in understanding the notice, but are not liable for the resulting taxes or penalties.
8. Limitation of Liability
To the fullest extent permitted by law, TaxDen’s total liability for any claim related to tax preparation services is limited to the amount of the preparation fee paid for the specific return in question.
TaxDen is not liable for:
- Consequential damages
- Lost refunds
- Penalties or interest
- Auditor findings based on omitted or incorrect client information
9. Contact Information
If you have questions about this policy or need help with a tax notice or audit, please contact us:
TaxDen
3375 Port Chicago Hwy., Ste. 36
Concord, CA 94520
support@taxden.com
(925) 602-0100