If you are wondering how much tax lawyers cost, you should know that the long and short answer to the question can be found in these two words: It depends.
It depends on the kind of work that needs to be done. Tax lawyers can either charge an hourly fee or a flat fee. While you can always hope for a flat fee to cap costs, the truth of the matter is that tax attorneys will only charge flat fees on simple routine transactions. For everything else, you have to pay by the hour.
As it is right now, the average hourly fees of tax lawyers across the country is $200 to $400 per hour, with so-called hotshot lawyers earning $1,000 per hour.
If you are wondering about the simple routine transactions, you can expect to pay the following charges. For installment agreements, it would be $750 to $1,500 all-in. For Offer in Compromise transactions, it would be $3,500 to $6,500. Meanwhile, average prices for penalty abatement is $1,000 to $2,500. A simple IRS audit will cost you $2,000 to $3,500 while a complex IRS audit will set you back at least $5,000.
On the other hand, appealing your case before the IRS costs between $5,000 to $7,500. Representation in US tax court litigation cost upwards of $10,000.
If you think it costs a lot of money to hire a tax lawyer, it does. However, we must say that the work pays for itself in the form of tax savings and avoiding getting into trouble with the law.
Where can you find good lawyers that specialize in taxation? While you can always find attorneys on Google local search, if you want to find peer-reviewed law firms, you should go to attorney websites like Find Law.
On the other hand, if you want to find the best lawyers in terms of client service, you should go to Yelp and find tax lawyers in your local area.
Essentially, though, when you look at the websites for the opinions of the other attorneys and former clients, you are essentially just depending on the opinion of other people.
We would encourage you to make your own decision. Sit down in consultation with at least three different lawyers and make a hiring decision based off that consultation.
There are several questions to ask any attorney during a consultation meeting. One is the experience – whoever you hire must have experience in the kind of work that you need done. Preferably, they should specialize in it.
Another question to ask is the track record. Track record just means the relevant work that was done in the past. What were the outcomes for the clients? How much tax savings were realized?
By asking different questions, you can easily tell if the lawyer is going to do a good job. And in a face-to-face meeting, you can get a feel for whether or not you are going to have a good working relationship with the lawyer for even better tax savings. For more information get in touch with Dean Hines Lawyer or contact us.