How Much Does it Cost to Hire a Tax Attorney?
Some tax attorneys charge a flat hourly rate (with the large firms charging well in excess of $600 per hour). Other tax attorneys charge a percentage of the tax savings that result from their services (which is often 33%) and others charge a flat fee (which can range from several hundred to several thousand dollars).
Tax matters of all sizes justify the expense associated with retaining a tax attorney. However, smaller cases may require the scope of the services be limited to make the cost sensible given the amount in controversy.
A tax attorney’s assistance typically results in tax savings substantially in excess of the tax owed–depending on what the tax attorney charges.
We strive to provide high-quality tax services at below market rates. In most cases, we provide clients with the ability to choose which method of payment they are most comfortable with and which results in the most reasonable rate for both parties. With the hourly structure, we can give clients an upfront estimate of the time necessary to resolve the case based on our experience with the type of case. Similarly, we are open to negotiating a percentage or flat fee arrangement.
Examples of Our Pricing
We handle sensitive and complex tax and legal matters which require special care and attention.
If you have a routine and uncomplicated tax or tax-related matter or a “quick tax question,” please contact our sister accounting firm (click here).
We are providing this fee schedule as an example. Note that it is merely an example. Our actual fees may differ for your matter or change over time. We negotiate rates and fee structures with each client up front. This fee schedule is just being provided to give you an idea of what a tax attorney might charge.
IRS Audits & Appeals
- Response to IRS CP2000 Notice – $2,500 and up (depending on complexity).
- IRS Audits – billed hourly at $300.
- IRS Appeals / Penalty Abatement / Whistleblower Claims – billed hourly at $300 but, in some cases, contingent fees may be possible based on tax saved (example – IRS balance is reduced from $70,000 to $30,000 – a $40,000 savings). Contingent fee is generally 1/3rd of the amount saved, though may be negotiable if amount is over $60,000.
- FOIA Requests – $750.
State Audits & Appeals
- Sales & Use Tax Audits and Appeals – billed hourly at $300.
- Texas Voluntary Disclosures – $1,000 – $1,500.
- Texas Open Records Requests – $500.
- Texas Unclaimed Property Claims – billed hourly at $300 but, in some cases, contingent fees may be possible based on amount recovered.
Federal and State Tax Litigation
- Tax Litigation – billed hourly at $300, custom budgets can be established for cases.
IRS & State Tax Debts
- Phase 1 IRS Records Check and Consultation – $750.
- IRS Revenue Officer Assistance / IRS Lien Withdrawal / Subordination / IRS Lien Release / IRS Bank Levy Release – $1,000-$3,000.
- Offer in Compromise, Installment Agreement, Currently Not Collectible – $1,000 to $10,000.
- Innocent Spouse – $1,000 to $2,500.
- State Tax Collections – $1,000 to $5,000.
[Generally, our clients’ tax returns are abnormally complex. Less complex returns can be referred to our sister accounting firm (click here).]
- Individual Tax Returns – single returns ($1,000 – few outstanding issues, $1,500 – requires Schedule E / Schedule C / audit compliance).
- Business & Trust Tax Returns – $1,000 and up.
- Gift Tax Returns – $750 and up
- Estate Tax Returns – billed hourly at $300.
- Non-Filers – ‘clean-up’ cases:
- Investigation of tax history, obtaining IRS transcripts, detailed client memo ($500 to $1,000).
- AVERAGE FEES – the average non-filer case is about $750 per unfiled year. Higher rates for net operating loss issues / complex cases. Fees are a-la-carte and client is free to select some but not all services listed.
- Offshore Voluntary Disclosures – $5,000 for straightforward cases (including preparation, pre-filing research & post-filing representation).
- International Tax Business & Estate Planning – billed hourly at $300.
- Tax Opinion Letters / Private Letter Rulings – billed hourly at $300 (note, the IRS’s filing fees for most private letter rulings has increased dramatically).
- Business Structure/Tax Opportunity Review – billed hourly at $300 or flat fees may be available depending on issue.
- Multi-State Sales Tax Analysis – billed hourly at $300 or $1,000 and up (depending on number of states).
- Research Tax Credits – fixed fee, hourly cap up to 25% of the tax benefit.
- Self-Directed IRA Structuring / Advice – billed hourly at $300.
- Solo 401(k) Plan / Rollover Business 401(k) Plan – $3,000 and up.
- Employee Benefits Policy or Plan Implementation – variable fixed fees or billed hourly at $300.
Free Help With Tax & Legal Matters
- If you have limited means and a tax or legal problem, you may qualify for free legal help from a number of organizations. We encourage you to contact these organizations for assistance.
- For tax matters, if you are low income, you may qualify for free help at a local low income tax clinic (click here) or you may also qualify to have your tax returns prepared for free by your local Volunteer Income Tax Assistance (VITA) center (click here).
- For legal matters, if you are in the Houston-metro area, you may qualify for free legal assistance through Houston Volunteer Lawyers (click here).