Frequently Asked Questions

Why should I use Neil Deininger & Company?

Experience

Deininger’s practice consists almost entirely of representing taxpayers in tax disputes and tax collection matters.  The Firm’s professional staff has over 80 years of combined experience in representing taxpayers before Federal and Arkansas taxing authorities.  Unlike most corporate tax law and accounting firms that mostly deal with clients who dispute tax liabilities due, the Firm handles all aspects of our clients’ tax issues from disputes, pre-filing tax return reporting issues, audits, evaluations of proposed audit adjustments or assessment to a comprehensive analysis of collection alternatives.  By targeting the issues that are most important to the overall outcome, the Firm strives to use a client’s resources efficiently so as to not waste time and effort fighting a tax liability that will likely never be reduced, but dictating concentration on dealing with the tax liability as a collection problem.

Specialization

When it comes to representing clients in the tax collection business, the Firm is unaware of any firm in the state of Arkansas with more experience. Because Neil Deininger & Company concentrates on tax dispute resolution, the Firm understands the available options for negotiating and pursuing resolutions most favorable to our clients.

Knowledge

The Firm has years of experience with Federal and Arkansas tax collectors in the State of Arkansas, knows how each tax collector approaches his or her job, their managers, what has worked as a solution with that tax collector in the past, and many other nuances and idiosyncrasies of the individual tax collectors and how to best deal with each. Unlike the national tax resolution firms who use aggressive advertising to promote “pennies on the dollar” Offers in Compromise, the Firm understands the complicated rules for discharging taxes in bankruptcy, knows when bankruptcy is a better option than an Offer in Compromise, and when the mere threat of bankruptcy can significantly lower the amount of an Offer in Compromise. While the national tax resolution firms proclaim to be Federal Offer in Compromise specialists, they know little or nothing about Arkansas Offers in Compromise and how they should be handled in connection with a pending Federal Offer in Compromise.  It does a taxpayer little good to compromise large Federal tax liabilities, when a significant amount of Arkansas tax liabilities are left unresolved.

Why do I need an Attorney and not just a Certified Public Accountant?

Very few traditional Certified Public Accountants (“CPAs”) have enough experience in the tax collection process to be able to represent such clients. While the skills that CPAs have are helpful to this process, more is necessary for effective tax resolution.  The Firm consists of Attorneys and a staff of professionals, some of which are licensed CPAs.*  CPAs make excellent tax resolution specialists when properly trained by an experienced attorney.

Can I go to jail?

Since about 1988, the Criminal Investigation Division of the IRS (“CID”) has been staffed to handle the aftermath of the poor job done by the IRS with regard to compliance and collection.

26 U.S.C. § 7201 states that it is a felony to purposefully attempt to evade or defeat any federal tax and is punishable by prison and/or fines.  This includes two separate crimes: attempting to evade or defeat by failing to file, and/or failing to pay.  It is also a felony to fail to account for and pay employment withholdings (26 U.S.C. § 7202), and/or to willfully file a fraudulent tax return (26 U.S.C. § 7206).  Federal law states that willfully failing to file and pay income taxes or estimated taxes is a misdemeanor (26 U.S.C. § 7203).  The IRS devotes significant time pursuing employers who fail to pay employment taxes while living lavishly or otherwise taking actions to avoid payment and taxpayers that have other legal problems.

Likewise, Arkansas law makes it a Class C felony to willfully attempt to evade or defeat any state tax (Ark. Code Ann. § 26-18-201).

In short, the failure to file income taxes and the failure to pay income taxes while taking evasive action to avoid doing so can involve criminal prosecution and jail time.  While the vast majority of tax cases are not criminal matters, it is important to recognize a case that may become criminal and persuade the IRS to not pursue those that are investigated by CID.  Further, it is important to understand that when an IRS criminal investigator shows up at your door unannounced, don’t say anything and call an attorney.  The government is not there to help you.