You may need help from a tax attorney for resolving a variety of tax issues. It may be handling a complicated IRS audit, back tax resolution, communicating with the IRS, or representation before the IRS. When you begin looking for a tax attorney, one of the prime concerns you have is about the cost.
Just like a doctor charges you differently for different illnesses, similarly, there typically is no set fixed fee for a tax attorney. Depending upon how complicated or straightforward your tax problem is, a tax attorney can charge you from $200 to $400 and beyond per hour. The fee can be close to a thousand dollars an hour for very experienced and highly reputed tax lawyers. However, not all attorneys charge hourly. Some may charge a flat one-time fee, depending on the complexity of your case.
Another major factor that determines the cost of a tax attorney is the experience and qualifications he or she has. If you hire a tax lawyer who has little experience, you can expect to pay less. However, if your tax case is complicated, you will probably want a lawyer with expertise but expect to pay more.
You will find that there are advantages and disadvantages with both ways an attorney charges their fees. A tax attorney charging an hourly fee may be a better option if your tax issue can be resolved quickly. You’ll be paying less since you will only need to hire him/her for a few days or weeks.
This is a good way to save your precious dollars, but one word of caution. You need to be sure that your tax problem will not take long to resolve. If your tax case drags on for a few extra days or weeks, you need to have the financial capability to pay your tax lawyer’s fee. Therefore, make your decision after considering the complete facts of your case and keep in mind the unpredictability that may occur.
You can also ask your tax attorney the approximate time duration for the resolution. Since he or she is an expert, you can get a better idea of how much you’ll be spending on the service. If you can only afford to pay a certain amount in fee, be honest, and let the lawyer know it beforehand so that you and your lawyer can work it out before you hire them.
The one major benefit of a flat one-time fee is that you do not worry about the case taking more time to resolve than what you had estimated. Complicated tax cases usually take weeks to resolve. Sometimes, a case can take more time, especially if it goes to the tax court. Therefore, when seeking resolution for a complex tax problem, a one-time fee is a better choice.
However, tax attorneys usually charge a flat fee for simple tax cases where they are confident of getting an early resolution. For complicated tax problems that may require them to spend more hours working, they prefer to charge hourly.
Different tax attorneys will charge a flat fee differently based on the tax problem, their experience, and their expertise. Hiring help for an IRS audit, for instance, can cost you anywhere between $2,000 to $5,000 depending upon how much work is needed and how experienced the tax attorney is. Similarly, representing you before the IRS or the tax court can cost between $4,000 to $10,000 and above.
There are tax problems that may not take long to resolve. If you are facing a simple tax issue, you may need to spend much less on hiring the services of a tax attorney. Some of these tax issues include:
Some tax problems need more time and work to resolve. For these tax issues, a tax attorney may charge a higher fee;
When facing these kinds of tax problems where you need representation, negotiations, tax debt reduction, etc., you need to research well to find a suitable tax attorney. Depending upon how much you are willing to spend, you may look for a more experienced or a comparatively newer tax lawyer.
If you find it challenging to afford hiring a tax attorney, you can do it yourself using free help. There are many resources available online that you can use. A variety of forums provide a platform to ask legal and tax questions from experts. If you have a tax attorney in your family or friends, you may take guidance from him or her and do the work yourself.
If you can pay a fee, you can inform your tax lawyer about your paying capacity at the start so that you may know if he or she is comfortable with it. You may also ask if you can only hire him or her for counseling.
Whatever your tax problem is, it can be resolved with the right help. Shortlist the best tax attorneys you find after your research, compare their fees and make your decision. You will certainly find the right tax attorney.
My name is Joe Valinho (President) and I built Justice Tax, LLC on one guiding principle – Justice for ALL taxpayers. Every day countless Americans who are worried and stressed ask our team of Attorneys, Enrolled Agents, and CPAs if we would fight for them. With $2.2 billion of back taxes solved and over 20,000 taxpayers helped, our answer is always “Yes” to getting the justice they deserve, and we can do the same for you and your family. Keeping with our founding fathers, “Life, Liberty, and the Pursuit of Happiness,” we created the Client Bill of Rights, ensuring that you receive RESPECT, while we navigate through the collection process. We will work countless hours to provide you FREEDOM from the IRS, and finally the Peace of Mind you deserve. We are on a mission to bring Truth, Justice, and Liberty for All taxpayers. Let us help you.