How Much Does a Tax Attorney Cost?

By January 16, 2017IRS Audit, Tax Debt
Picture of Expensive Tax Attorney

The Cost Of Hiring A Tax Attorney

In this article, we’re going to give you an idea of how much it normally costs to hire a tax attorney, starting with the types of fee structures that most attorneys use. Hopefully, you’ll be able to use this information to get a rough idea of what your legal fees might be, and can compare them to other options you have available.

Types of Tax Attorney Fees:

Tax attorneys generally charge either an hourly rate or a flat fee for their services.

  • Hourly Rate: The majority of tax attorneys charge by the hour. Every attorney will charge a different hourly rate, but most rates are between $200 to $400 per hour. Highly experienced attorneys or attorneys working in big firms in large cities can charge more than $1,000 per hour.
  • Flat Fees: The other options is a“flat fee,” which is a one-time charge regardless of how many hours the attorney spends on your case.  Flat fees are generally only used on simple or routine matters.

Which one is better? There are benefits and drawbacks to both of these fee types. An hourly rate is attractive because you don’t run the risk of overpaying if the attorney is able to resolve your case quickly or with very little work. On the other hand, you bear the risk of higher legal fees if the opposite occurs and your case takes more time to resolve than originally expected. This is one reason why most consumers prefer a flat fee arrangement, which allows them to lock in the cost of hiring an attorney.

At the end of the day, you might not have much choice. Generally, tax attorneys charge by the hour unless the case is very routine or simple. Feel free to request a flat fee, but the attorney might not be willing to take the risk of having to perform extra work if something unexpected happens in your case.

Typical Cost of Hiring a Tax Attorney

Here’s a very simple breakdown of the average prices that tax attorneys charge for common tax services (whether hourly or as a flat fee):

  • 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 +
  • IRS Appeals: $5,000 – $7,500
  • US Tax Court Litigation: $10,000 +

Keep in mind that the prices quoted above are only averages. The actual fees you might have to pay will depend on where you live, how experienced of an attorney you hire, and the complexity of your case.

How Much Do We Charge?

To give you a better idea of how much it will cost to hire a tax attorney, we’ve provide a summary of the fees that our office charges for various tax resolution cases. Keep in mind that we help clients all over the country, even though we are located in Reno, NV. Our fees tend to be significantly lower than attorneys located in regions with higher cost of living (like southern California).  Your case might be less or more depending on the unique characteristics of your case (click here to request a price quote):

Save Money by Doing It Yourself

If you can’t afford a tax attorney, you have the option of handling your tax matter by yourself. Although that might sound intimidating, there are plenty of resources available that will help you learn how to solve your tax problem yourself.

If you are thinking about doing it yourself, check out our Self Help Courses. These are online web courses prepared by our tax attorney that cover everything from installment agreements to US Tax Court litigation. Each course gives you a step-by-step guide on how to resolve your specific tax problem. If you’re interested in our self-help course on how to get rid of your tax debt, click here.

More Information

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