Auditing 1997 Tax Returns Before Filing Now Possible With Newest Release of TaxChecker.

LOS ANGELES--(BUSINESS WIRE)--Jan. 26, 1998--

Software Includes 1997 Tax Forms and Exact IRS Audit Tests;

Continues Alleviating IRS Auditing Fears

Tax Defenders(TM), Inc. announced today immediate availability of its TaxChecker(TM) family of software -- the first software ever to give American citizens the power to audit their taxes before filing.

The newest version of the TaxChecker software family incorporates all 1997 tax forms released in December as well as the exact IRS auditing tests used by the United States Internal Revenue Service to audit personal, small business and corporate tax returns.

"Taxpayers can audit their own returns in less time than it takes to walk to the mailbox and file," stated Gary H. Kuwada, founder and president of Tax Defenders. "There is nothing that provides the security from audits better than TaxChecker. It is the only software that performs actual IRS audit tests. Even current IRS auditors say it is the best prevention for an audit that they know."

Comprised of software packages for individuals, small businesses, corporations and tax professionals, the TaxChecker family performs audits of tax returns using the identical analysis, guidelines, audit procedures, tests and forms as those used by the IRS. Included in the programs are advice for tax penalty abatement and an income projection module.

The introduction of TaxChecker products marks the first time in American history that the power of complete self-auditing tax analysis software -- for simple and complex returns -- has been placed into the hands of citizens in an easy-to-use format.

Using newly incorporated 1997 tax forms, TaxChecker's tax projection module provides annualized statements that allow users to estimate their income and tax for 1998. This feature alerts users to the amount of taxable income that IRS auditors can establish by analyzing the user's banking and spending habits.

"By incorporating the most current tax forms and IRS audit tests into TaxChecker, we're essentially empowering the American public -- giving them the knowledge and tools they need to prepare for, combat and avoid IRS audits," said Kuwada.

"During an audit, not only tax returns are examined, but a person's lifestyle is scrutinized as well. TaxChecker gives tax professionals, businesses and individuals the best method available for analyzing their tax returns. This is particularly important when considering the 1997 tax reform bill made more than 800 changes to the tax code."

The TaxChecker family consists of four unique software packages including:

TaxChecker Individual: for people filing individual 1040 returns and schedules. The TaxChecker Individual software package will be available at a street price of $49.95.

TaxChecker Small Business: for small business owners and small office/home office owners, consultants and individual contractors filing business returns. TaxChecker provides the IRS audit procedures, guidelines and interview questions for specific industries and businesses. The software contains the IRS Market Segment Specialization Program (MSSP) guides and Internal Revenue Manual codes and procedures that apply specifically to business returns. TaxChecker Small Business will be available at a street price of $89.95.

TaxChecker Corporate: for tax professionals and corporate executives preparing and filing corporate S and C returns. The corporate version of TaxChecker will be available at a street price of $129.95.

TaxChecker Professional: for tax professionals preparing client returns for individuals, small businesses and corporations. TaxChecker Professional includes all of the above software modules. The software also qualifies as material for continuing education credits in 16 states and includes a special client marketing package. The professional version of TaxChecker will be available at a street price of $269.95.

All TaxChecker software packages are fully compatible with any application capable of exporting information in a .QIF file (a universal information file) format, including popular financial management and tax preparation software such as Intuit's TurboTax(R), Kiplinger's TaxCut(R), Quicken(R), Microsoft Money(R) and Managing Your Money Plus(R).

Users of such financial management programs can download relevant information to TaxChecker and quickly generate easy-to-read reports showing exactly what an IRS official would see in the event of an audit. Reports can also be generated by simple, straightforward user input led by menu driven prompts.

TaxChecker is available through the Web at www.taxchecker.com and via direct sales at 800/659-5427.

About Tax Defenders

The TaxChecker software family has been developed through former IRS tax auditors and attorneys with more than 18 years of IRS experience in tax audits and law. Tax Defenders, Inc., the developers of TaxChecker software, was founded in 1996 and is based in Los Angeles. Its mission is to help individuals, businesses and tax professionals analyze, better understand, help avoid and prepare for IRS audits. Tax Defenders, Inc. maintains a World Wide Web site at www.taxchecker.com . -0-

Note to Editors: Tax Defenders and TaxChecker are trademarks of Tax Defenders, Inc.

CONTACT: Walt & Company Communications

John Fitzsimmons, 408/496-0900

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