Legal Question in Tax Law in California

They will assess the taxes and penalties specified in the notice of defeciency, then pursue you for the debt to the government. You may lose your riights to protest what they are doing. They may ultimately lein your property and can garnish your wages. Interest will accrue on the unpaid taxes until you pay them. You are much better off to deal with the audit and determine what they want. THen you can defend your positions and hopefuly reduce the alledged liability. Some audits even end up with a refund. Ignoring them is a very bad idea.