If you’re having trouble with the IRS, it’s okay to hire a CPA or tax preparer. Right?
Well, if your tax liability case goes to trial, there’s one thing your CPA or tax preparer couldn’t do–refuse to testify against you. If you hire a tax attorney, though, there’s such a thing called attorney-client privilege. That means they can’t testify against you.
Another advantage of hiring an experienced tax attorney is they keep up to date with complex tax laws and codes, which can change yearly. Although CPAs and tax preparers know about tax settlement programs, tax lawyers understand the pros and cons of each program and can advise you on which one to use.
Of course, if you’re worried about tax attorney fees, here’s what you need to know.
Tax Attorney Costs: Flat Fees vs. Hourly Rates
Some attorneys charge a flat rate, meaning clients only need to pay a one-time fee. They offer this for cases that are pretty straightforward to resolve. However, most tax lawyers charge an hourly rate, ranging between $200 to $400.
If you opt to hire the best tax lawyer in your area, you might even spend $1,000 per hour. The ideal situation is, of course, to work with a tax attorney who doesn’t charge per hour even if your case is complicated. But if finding one is challenging, your best bet is to hire someone from a reputable law firm like Delia Law to help you effectively and quickly accomplish your goals.
Budgeting For Your Case: Understanding Types of Tax Attorney Fees
Suppose, after googling ‘tax lawyer near me,’ you found an attorney that offers a flat rate. Before you get too excited, though, be sure you know how much tax lawyers typically charge for standard tax services.
For example, an installment agreement could cost around $700 to $1,500, while an IRS audit could set you back $2,000 to over $5,000. Also, if your case requires going to US Tax Court, you should be ready to spend upwards of $10,000.
Should You Represent Yourself?
Not everyone has money to hire a tax lawyer. If your current financial situation makes you hesitate to look up attorneys in your area, you have other options.
The first is handling your taxes by yourself. It’s not something anyone can do, but there are many resources online. Just keep in mind that the DIY route can be even more costly than hiring a lawyer if you make mistakes.
Another option is to find a law firm that offers payment plans. If there are none, it’s best to contact organizations that provide free legal help.
Are Tax Issues Stressing You Out?
Sometimes, tax preparers and CPAs can help you, but if you suspect that your tax liability case could go to trial, hiring a tax attorney is your best course of action.
While it might cost a lot to work with the best tax lawyer, you don’t want to make costly mistakes by solving tax issues yourself. It’s a good thing then that you know the average costs for hiring a tax attorney so that you can budget for that as early as now.
For more tax tips and advice, don’t forget to check our other posts.