It depends on the type of tax attorney and the depth of their knowledge and experience in their focused tax practice. The hourly rate for a new tax attorney straight out of law school might be $250-$375. In contrast, a seasoned tax attorney with a Master of Laws in Taxation (LLM) who worked with the US Department of Justice Tax Division for 9 years and then practiced for another ten years in private practice could easily charge over $850.
Similarly, an experienced Mergers and Acquisitions Tax Attorney with 15+ years of experience representing companies and founders on the tax consequences of business combinations and entity structure and advising regarding capitalization and equity compensation, joint ventures, and exits can command $1,500 or more per hour.
However, a solid tax attorney specializing in tax controversy who previously worked for the Internal Revenue Service will likely run $450 – $575 per hour.
How Tax Workout Group Charges for its Tax Attorneys
We are flexible and accommodate our clients with the most suitable fee structure whenever possible.
Hourly: If there are unknown facts and circumstances associated with representing a client in a tax matter, for example, in a complex civil tax audit, which could advance through the Appeals Division of the IRS or even the US Tax Court to arrive at the proper outcome, we typically charge by the hour.
Flat fee: However, in tax collection defense and tax bankruptcy cases, where we can reasonably estimate the number of hours it will take to complete the matter, we will often agree to a flat fee, payable over time where the matter could take months or even years to become fully resolved (time almost always works in favor of the taxpayer).
Contingency: If we support the client’s claim, we will often take a tax case on a contingency fee basis whenever permissible. Unlike other areas of the law where contingency fees are commonplace (e.g., personal injury recovery), tax attorneys charging fees on a contingency fee basis are more of an exception than the norm. The IRS attempts to regulate this area in regulations known as Circular 230.
Here are the exceptions:
First – a contingent fee can be charged in connection with an IRS audit or challenge to (a) an original tax return, or (b) an amended tax return or refund claim, if the claim is filed within 120 days of the taxpayer receiving written notice of the examination of, or a written challenge to the original tax return.
Second – a contingent fee can be charged in connection with a claim of credit or refund related to statutory interest or penalties,
Third – a contingent fee can be charged in connection with any judicial proceeding arising under the Internal Revenue Code.
Hire a Tax Attorney or a Tax Debt Relief Company?
Tax debt companies are often predatory businesses that target unsuspecting clients who have found themselves in a compromising position because of large tax claims, penalties, and interest or because the IRS is threatening them because of unfiled tax returns. Many of these tax debt relief company advertisements are scams or misleading, and the companies behind them do not have the professional expertise of experienced tax attorneys to represent your interests properly. It has created a cottage industry for businesses to charge unethical fees and make promises they cannot hope to keep. They often employ deceptive trading and billing tactics, which, in the end, make the whole problem significantly more stressful and leave you in a worse position than before. These companies promise to help thousands of clients settle tax debts for a fraction of the amount, pausing enforced collections (often by initiating frivolous filings to the extreme detriment of the taxpayer).
Every day, we see clients whose cases worsen years and thousands of dollars later. We strongly encourage taxpayers to hire a qualified, licensed tax attorney rather than a tax debt relief company.
Highly Rated and Affordable! Count on TWG for all Tax Matters, Including Eliminating Tax Debt.
We have redefined how quality tax-related legal services are provided by employing technology to promote deep and meaningful collaboration among our professionals and clients. Our innovative practice model is optimized with efficient workflows developed to produce excellent results following the highest professional standards. For each legal engagement, we assign a highly qualified team of professionals headed by a lead tax attorney so that every client receives extraordinary senior-level attention throughout the handling of their case.
Our team of tax professionals comprises former Department of Justice (Tax Division) and US Attorney’s Office, IRS tax and bankruptcy attorneys, IRS Revenue Agents, and IRS collection division personnel. We also operate a Tax Compliance practice group where our Certified Public Accountants, Tax Accounts, and IRS Enrolled Agents provide expert tax compliance, tax reporting, tax accounting, and tax consulting and advisory services.
If you are worried about tax issues—criminal tax matters, civil tax audits, tax appeals, tax litigation, tax collection defense representation, or tax bankruptcy—please get in touch with us for a free, no-obligation consultation to see how we can help.
