What is Tax Attorney? Types & What You Need to Know

The law is something most people have little or no idea about, and getting into a lawsuit is the last thing you want to get into because it can be very frustrating and tiring. It is the reason you need to ask ‘how much does a tax attorney cost?’

Every once in a while, we require the services of an Attorney, most especially when taxes are involved.

We’ll start with the types of fee structures that most tax attorneys utilize in this post to give you an idea of how much it often costs to engage a tax attorney.

Hopefully, you’ll utilize this information to get a general estimate of your legal fees and compare them to alternative options.

Because this post will be very beneficial, we urge you to read it to the end.

Who is A Tax Attorney?

A tax attorney is a lawyer who practices exclusively in taxation.

Tax attorneys assist people in organizing their finances to maximize their tax savings, comply with tax laws, and resolve issues with the IRS or other taxing authorities.

Some focus on specific taxation issues, such as estate planning, international taxation, or business taxes.

Law companies or accounting businesses frequently employ tax lawyers.

Some may be sole practitioners, meaning they own and operate their own company.

Tax attorneys at law firms frequently advise clients on obtaining favorable tax treatment in various situations. 

They may prepare contracts or other legal documents as needed and represent clients in tax court or different settings.

Tax lawyers in accounting and consulting firms are more likely to assist clients in complying with tax regulations.

What are the Types of Tax Attorney Fees?

Having understood who a tax attorney is, we will move to know the tax attorney cost as well as the various types of tax attorney fees.

Below are the various types of tax attorney:

1. Hourly Fee

The majority of tax attorneys work on an hourly basis. Every lawyer has a different hourly rate, although most are between $200 and $400 per hour.

Attorneys with expertise or who work for huge companies in big cities can charge more than $1,000 per hour.

If a lawyer charges by the hour in some instances, they may also charge a retainer fee.

A retainer fee is paid at the start of an issue that is calculated based on the attorney’s hourly rate.

The retainer fee is comparable to a deposit. Until that money is depleted, the fees and costs of the case are subtracted.

In most cases, a retainer charge is non-refundable.

2. Contingency Fee

The contingency fee is the second sort of fee. If the lawyer wins the case, they will be paid a share of the damages awarded after the case.

The lawyer does not charge an hourly fee in this billing structure.

The percentage that the lawyer will receive as payment varies depending on the location and the fee arrangements specifics.

Contingency fees might range from 5% to 50% of the award amount.

A contingency fee means that the lawyer is not paid unless and until the case is won.

To put it another way, their earnings are conditional on their achievement.

It’s crucial to remember that, even though the attorney doesn’t get paid until the case is won, the client may still be accountable for up-front fees related to the lawsuit.

These may include Expenses for court filings, discovery, expert witness fees, and other expenditures associated with the case’s completion.

3. Flat Fees

A “flat fee” is a one-time cost regardless of the number of hours an attorney spends on your case.

Flat costs are usually reserved for straightforward or routine problems.

Which Of These Fee Types Is The Best?

All these fee categories have advantages and disadvantages.

An hourly cost is appealing since you don’t risk overpaying if the attorney can conclude your case quickly or with minimal effort. 

On the other hand, if the opposite occurs and your case takes longer to conclude than anticipated, you risk incurring larger legal bills.

This is one of the reasons why most clients choose a flat fee agreement, which allows them to budget for legal services in advance.

You might not have much of choice at the end of the day. Unless the issue is exceedingly routine or easy, tax attorneys usually charge by the hour.

Requesting a flat price is fine, but the attorney may not be ready to risk having to do additional work if anything unexpected develops in your case.

Now that you’re here, you can check out Why Every Business needs a Tax Attorney in 2022 | A Must Read

How Much Does a Tax Attorney Cost?

Legal work isn’t cheap in general. According to a survey by Martindale-Avvo, a legal marketing, and directories organization, tax attorneys charge $295 to $390 per hour.

The length of time an attorney has been practicing can affect the figure.

According to the firm’s research, 37 percent of people who hire a lawyer for their taxes pay between $0 and $5,000, and another 14 percent spend $5,000 to $100,000.

About a quarter of the work is done pro gratis or without fee, and 4% is done on a contingency basis (where the attorney receives a portion of the damages if any are awarded).

Here’s a quick rundown of the average fees charged by tax attorneys for standard tax services

  • Installment Agreement: $750 – $1,500
  • Offer in Compromise: $3,500 – $6,500
  • Penalty Abatement: $1,000 – $2,500
  • IRS Audit (simple): $2,000 – $3,500
  • IRS Audit (complex): $5,000 +
  • Also, IRS Appeals: $5,000 – $7,500
  • US Tax Court Litigation: $10,000 +

It’s important to remember that the prices listed above are simply averages. The fees you may be charged will vary depending on where you live, how experienced an attorney you pick, and the intricacy of your case.

What Factors Determine Tax Lawyer Fees?

As previously stated, a tax lawyer’s fee is determined by various criteria.

An experienced attorney will charge more than a fresher lawyer in a small town in a large city.

Other considerations have a role in determining the lawyer’s fee. These are some of them:

  1. The sort of legal counsel necessary

The sort of representation required by the case accounts for a significant portion of the cost.

As the case’s intricacy grows, so does the cost. When there is an aggravating factor or circumstance, this rule also applies.

  1. The Services Provided By The Attorney

The cost will climb as the number of services provided by the attorney increases.

  1. The Fee Structure Adopted

The fee system that is implemented is also a significant cost factor.

In general, the cost varies depending on whether the attorney Bills on a contingency fee plus an hourly rate, charges a flat price; or is retained and offers assistance as needed.

Other factors that may be considered when determining a lawyer’s fee include:

4. The amount of time and effort the lawyer must put into the case

5. How difficult the case is predicted to be.

6. The skills required to perform the legal services.

7. The large damage request is in the lawsuit, which is a factor if an individual has agreed to a contingency fee.

Why Do I Need a Tax Attorney?

  1. Estate planning

A tax lawyer can assist you in developing estate planning strategies and handling the paperwork associated with reducing estate taxes, transferring assets to family members, establishing trusts, and other techniques.

  1. Starting a company

A tax lawyer may be able to assist you in developing tax-efficient solutions for beginning, buying, selling, or expanding a business.

  1. Tax controversies

A tax attorney can assist you if you have a tax problem, wish to challenge the IRS, the state, or a local tax authority, or seek a hearing before the United States Tax Court.

  1. Tax relief

A tax attorney may be able to assist you if you have an outstanding balance with the IRS or another tax authority that you want to settle or fight.

A Tax attorney can help you make a Compromise Offer and pursue installment payment of Tax bills over time.

FAQs How Much Does a Tax Attorney Cost

We fall behind on occasion. Worse, we occasionally fall behind on our tax filing. Of course, the first step is to file any outstanding tax returns. It may seem paradoxical, but the IRS considers failure to file tax returns to be a more serious infraction than merely failing to pay. Of course, the ideal course of action is to file all tax returns and pay them on time.

Yes, the IRS has the authority to levy a bank account in order to collect unpaid taxes. This implies that the IRS has the authority to make money immediately from your bank account.

The IRS also has the power to seize your wages or savings from labor credit unions, trust firms, and credit unions. Of course, this is one of the worst-case scenarios when it comes to the IRS.

Unfortunately, those who delay or try to disregard their IRS difficulties are increasingly likely to end up in similar predicaments. Fortunately, active IRS attorneys, such as the Pearson Butler team, can assist you in resolving your IRS issues and avoiding similar situations in the future.

Inaction is not an option in this situation. The best approach is to contact an experienced team for consultation and expert advice on cleaning your name and paying any outstanding taxes.

The IRS has the ability to disclose the contents of its files to federal and state entities. Aside from that, the files are normally regarded as private. However, it is not uncommon for IRS files to be hacked or for IRS personnel to get unauthorized access to income tax records. In these instances, taxpayers have few options, and violators are rarely prosecuted.

If a child’s earned income from a job exceeds the standard deduction, or if they get investment income that exceeds a particular threshold, they must submit a tax return.

More complicated regulations apply if they get both earned and unearned money. Even if it is not needed, a child who qualifies for certain types of tax benefits may desire to file a return. This is because, despite owing no taxes, they can receive a return from the credit.

If income tax was withheld from a child’s earnings, they need also file a tax return. Even though they are considered dependent, children are accountable for their own tax obligations.

Their parents may be forced to pay their taxes if they do not. If a child is unable to file a tax return, a parent or guardian must file one on his or her behalf.


By doing it yourself, you can save money.

If you can’t afford a tax attorney, you can handle your tax situation on your own. Although this may be intimidating, there are numerous resources accessible to assist you in learning how to fix your tax problem on your own.

Or better still, If you go to a low-income tax clinic, also known as a LITC, in your area, you might be able to get free or low-cost guidance from a tax attorney. These clinics represent persons with incomes below a specified threshold who need to work with the IRS to fix tax issues.

LITCs can defend you before the IRS and in court in audits, appeals, and tax collection disputes. LITCs can also assist people in responding to IRS letters or resolving account issues.

We hope you found this post super helpful as promised. Please feel free to let us know what you think.



We Also Recommend

Leave a Reply
You May Also Like