How much does a tax attorney cost?
How much does a tax attorney cost?
$200 – $600 average cost per hour
$500 – $10,000+ flat fee cost
Average tax attorney fees
Hiring a tax attorney costs $200 to $600 per hour or $500 to $10,000 or more, depending on their experience level and the individual case details. Hiring a tax attorney for a simple tax return filing costs less than a complex IRS audit or corporate compliance case.
| Fee type | Average cost |
|---|---|
| Hourly rate | $200 – $600 per hour |
| Flat fee | $500 – $10,000+ |
Hourly rate
In some instances, tax lawyers use an hourly billing system. The hourly rates for tax attorneys can vary from $200 to $600 per hour on average, with some highly experienced attorneys charging $1,000 per hour. If you engage a tax attorney who bills hourly, they'll tell you their specific hourly rate.
Flat fee
Tax attorneys often use individual flat fees for specific services or a comprehensive flat fee encompassing all required services. These flat fees range from $500 to $10,000 or more. For example, one legal professional might set separate fees for handling your tax return and for preparing an offer-in-compromise submission.
Another tax attorney could offer a single, all-inclusive flat fee that covers any additional assistance you might require. The amount they charge can fluctuate depending on how intricate your tax situation is. Before providing an estimate, the attorney will conduct a thorough examination of your financial circumstances.
What is a tax attorney?
A tax attorney is a specialized legal professional who assists individuals and businesses in navigating complex tax laws, resolving disputes with tax authorities, and ensuring compliance with tax regulations. Their expertise spans various areas, including corporate taxation, estate planning, international tax law, and litigation.
Tax attorneys provide the following services:
Tax disputes with the IRS or state tax authorities
Audits, appeals, and courtroom litigation
Tax planning and minimizing liabilities for individuals and businesses
Estate planning to reduce taxes using trusts, charity, and other techniques
Corporate tax advice related to mergers, acquisitions, or compliance
International tax assistance
IRS debt relief
Tax lawyer rates by service
Tax attorney rates depend on the type of case and what services they render. Representing you in court and appearing at a hearing will normally cost more than simple paperwork that they can do in-office.
| Service | Flat fee range | Average hourly rate |
|---|---|---|
| Filing tax returns | $500 – $1,500 | $200 – $550 |
| IRS audit representation | $2,000 – $5,000 | $200 – $500 |
| Offer-in-compromise (OIC) | $3,500 – $7,500 | $250 – $550 |
| Estate tax planning | $2,500 – $6,000 | $200 – $450 |
| Corporate tax compliance | $5,000 – $10,000+ | $300 – $600 |
If the IRS is auditing you, they will review you or your company's financial documents to ensure what you've reported is correct. If you disagree with the result of the audit, a tax lawyer can file an IRS Appeal and protest.
Tax lawyer cost factors
A few different factors affect the cost of hiring a tax lawyer:
Location: Tax attorneys in metropolitan areas tend to have higher rates than those in rural regions.
Knowledge & experience: Highly experienced attorneys or those specializing in niche areas charge higher fees.
Case complexity: Complex cases involving large debts or multiple years of unfiled taxes are more expensive.
Bankruptcy: If you have an unmanageable tax debt, you may be able to discharge it through bankruptcy. A bankruptcy lawyer charges $600 to $4,000, depending on the debt and bankruptcy type.
Other fees
Some tax lawyers charge extra or independent fees for the following services:
Court filing costs
Paperwork
Summons fees
Travel expenses
Paralegal aid
When to hire a tax attorney
You should consider reaching out to a tax attorney if you're feeling overwhelmed by unfiled tax returns, unpaid taxes, or IRS collection efforts. Tax attorneys can assist with resolving liens or levies, negotiating with the IRS, and applying for various tax relief programs. They possess in-depth knowledge of tax laws and IRS procedures.
Hiring a tax attorney is especially important if the IRS is investigating you for potential tax crimes. Tax attorneys can provide legal representation and offer attorney-client privilege, which is not available when working with other tax professionals.
Other attorney costs
Attorney fees range from $100 to $400 per hour or more, depending on the type. If you're not sure if a tax attorney is the right specialty for you, check out some related types of lawyer specialties:
| Service | Average rate |
|---|---|
| Bankruptcy lawyer | $600 – $4,000 total |
| Cost to set up a trust | $1,000 – $7,000 total |
| Cost to start an LLC | $1,000 – $2,300 total |
| Estate lawyer fees | $200 – $400 per hour |
Tax attorney FAQs
Are attorney fees tax deductible?
Although personal legal fees are normally not tax-deductible, legal expenses associated with business activities often qualify for deductions. To stay compliant and make the most of your potential deductions, seek guidance from a financial advisor with expertise in tax matters who can offer advice specific to your circumstances.
What does a tax attorney do?
A tax attorney specializes in legal tax matters such as IRS audits, tax debt relief, litigation, and estate planning. They provide advice to clients in order to minimize liabilities and ensure compliance with tax law, which can prevent an audit.
How can a tax attorney help with IRS audits?
A tax attorney can represent you during audits by communicating with the IRS on your behalf, gathering necessary documentation, and negotiating settlements.
Are tax attorneys worth it?
Hiring a tax attorney can be worth it if you need assistance with something you can't handle yourself, such as litigation or IRS audits. They can negotiate a compromise, come up with installment agreements, and reduce your overall tax liability.
Tax attorneys provide critical support for individuals and businesses dealing with complex or high-stakes tax issues. Understanding their services and costs can help you choose the right professional for your needs.
Getting estimates from tax lawyers
Follow these important steps when looking for qualified tax attorneys near you:
Look up feedback from past clients on platforms like Lawful and Google to gauge the attorney's reputation.
Ensure the attorney has a proven track record of handling cases similar to yours.
Choose an attorney who clearly outlines their fee structure to avoid unexpected costs.
Obtain a written contract before the attorney begins work to protect your interests.
Questions to ask a tax attorney
When looking for experienced legal help from a tax attorney, gauge their knowledge and suitability by asking them these questions:
What types of tax matters do you specialize in?
How many years of experience do you have in handling cases like mine?
Are you licensed to practice in the relevant jurisdiction for my case?
What is your fee structure? Do you charge hourly rates or flat fees?
Can you provide an estimate of the total cost for my case?
How will you keep me informed about the progress of my case?
Who will be working on my case? Will it be you or other members of your team?
Have you successfully resolved cases like mine in the past?
What is your approach to handling tax disputes with the IRS?
How quickly do you typically respond to client calls or emails?
Do you offer a free initial consultation?
What documents will you need from me to get started on my case?
How long do you anticipate my case will take to resolve?
What potential outcomes should I be prepared for in my situation?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.