How Much Are Your Fees? [infographic]

close up of an attorney, tax audit

Tax attorneys charge a variety of fees to resolve IRS tax issues such as tax audits, delinquent taxes and payments, and tax litigation. These fees are usually determined based on the type of service provided and the complexity of the case.

Tax Problems and Resolutions

People with tax problems often benefit from services provided by a tax attorney. Problems with the IRS involving tax audits, delinquent taxes, and tax payments can cause significant issues with a person’s finances. Although many individuals try to resolve tax issues on their own, it isn’t always in their best interest. Certain situations are best handled by a professional tax attorney who can work with the IRS to come up with agreeable resolutions. Common issues include:

  • Tax audits
  • Settlement negotiations
  • Fees and penalties
  • Criminal charges
  • Tax notices that need legal explanation

Finding a tax attorney with the right credentials and legal experience is important for getting the best results. The tax attorney should have proper credentials and a license to practice in the taxpayer’s state. Tax attorneys who work with tax relief firms often have a license by the IRS to train tax professionals, and they usually specialize in tax law. A reputable tax attorney will clearly define his/her plans for tax resolutions and explain fees for included legal services.

Fees for tax resolution services may vary based on the complexity of the case. The most common type of billing for a tax attorney is an hourly rate with a range of $220 to $340 per hour. This rate can vary according to the experience and expertise of the attorney, as well as the geographical location. Some tax attorneys charge a flat fee for a particular service. For settlement negotiations with the IRS, fees may range from $1000 upwards. If Tax Court legal representation is required, fees may range even higher, generally starting between $3,000 and $5,000, unless the case involves a lengthy litigation. With a flat fee, a taxpayer knows what charges will be upfront, but the fee may be set at the upper end of the attorney’s rate scale to cover the maximum number of hours required to reach a resolution with the IRS.

Some tax attorneys charge a fee of $100 to $500 for an initial consultation, while other attorneys offer free consultations. Tax attorneys who offer free consultations reduce upfront costs and provide valuable information on specific resolution needs for each individual case.