How Much Does a Tax Attorney Cost?

Tax attorney costs vary, but you need to consider experience as well as price.

Tax attorneys can help with a wide range of tax problems, including issues related to unpaid taxes, tax bills, penalties and interest, and what happens if you don't file taxes. They're the only tax pros who can represent you in Tax Court (other than Enrolled agents and CPAs with a USTCP designation, with some restrictions). But if you've never worked with one, you're probably wondering how much tax attorneys charge, what typical tax attorney rates look like, and whether or not tax attorneys are worth it when dealing with a serious tax matter.

Tax attorney fees vary widely — from a few hundred dollars to $10,000 or more, depending on the complexity of your case. How much an IRS lawyer costs is typically based on their experience and credentials.

The cost also depends on the complexity of your situation, the time required, the tax attorney's fee structure, and the severity of your tax problems. To get a quote, contact a tax attorney directly. Most tax attorneys start with a free consultation. Then they can explain their fee structure and give you an estimate of the cost.

This guide provides an overview of tax attorney rates and what to expect if you contact a tax attorney. Then, it covers alternatives to hiring tax attorneys if you want to save money.

Types of Fees and Tax Lawyer Rates

When you ask, "How much does a tax lawyer cost?" the first step is to find out how they assess their fees. Most tax attorneys charge flat fees or hourly rates. These fee structures influence how much tax attorneys charge and help you compare the cost of different professionals.

Flat-fee pricing for tax attorneys

A tax attorney may charge a flat fee for each of the services they provide, or they may charge a flat fee that covers all of their services. For instance, one tax attorney may charge a fee for filing unfiled returns and another fee for submitting an offer-in-compromise application. Another attorney may charge a flat fee that includes both of those services and anything extra that you need. Flat fees vary based on the situation's complexity, and generally, a full financial analysis is required before estimating the flat fee cost, especially when penalties and interest or IRS audits are involved.

Hourly tax attorney cost

In other cases, tax lawyers charge by the hour. Tax attorney hourly rates vary significantly, but on average, they tend to be $200 to $550 per hour. If you hire a tax attorney who charges by the hour, they can tell you how much their rates are. Hourly billing is more common in complicated tax matters or situations involving failure to file penalties, criminal tax exposure, or extensive IRS audits.

Whether a tax attorney charges a flat fee or by the hour, individual tax resolution cases cost $3,500 to $4,500 on average. For businesses, the average tends to be $5,000 or $7,000. However, depending on your situation, you may pay more or less than these averages.

When You Should Hire a Tax Attorney

You should contact a tax attorney if you're overwhelmed with unfiled tax returns, unpaid taxes, or IRS collection actions. Tax attorneys can help you deal with liens and levies, negotiate with the IRS, and apply for tax relief programs. They have extensive expertise with tax laws, IRS programs, penalties, and interest relief, and resolving tax problems that occur when you fail to file or fall behind on tax bills. However, you can also hire other tax professionals, such as Certified Public Accountants (CPAs) and enrolled agents (EA) to help with these issues.

You will likely need a tax attorney if the IRS investigates you for tax crimes. They can also offer you attorney-client privilege, which you don't get with other tax professionals. This level of confidentiality is especially valuable if you are dealing with complex tax matters, allegations of fraud, questions about what happens if you don’t file taxes, or situations where a legal defense may be necessary.

Tax Attorney Cost Based on Service

How much tax attorneys charge often depends on which IRS program you need, how complicated your tax matter is, the amount of penalties and interest involved, and how severe your tax problems have become. Here is an overview of the average tax attorney fees for different types of IRS services.

Keep in mind, however, that these prices are average. They may be higher or lower, depending on your situation.

Installment Agreements

How Much do Tax Attorneys Charge for Installment Agreements?

On average, tax attorneys charge $2,500 to $3,500 to set up IRS installment agreements. The cost varies based on the complexity of your situation. For instance, if you owe more than $50,000, you may have to make a financial disclosure, and that can drive up the total tax attorney cost. Similarly, the number and complexity of your unfiled returns also affect the cost. Tax attorney rates may be higher when penalties and interest are substantial or when IRS revenue officers are already pursuing collection.

What Is the Tax Attorney Cost for Partial Payment Installment Agreements?

Partial payment installment agreements cost $3,500 to $5,000 on average. They typically cost more than regular installment agreements because the IRS requires a detailed financial analysis and ongoing verification to confirm that you qualify. With a partial payment installment agreement, you make monthly payments for a set period of time, and then the IRS eliminates the rest of your debt.

Offer in Compromise

How Much Are Offer-in-Compromise Attorney Fees?

The average tax lawyer cost for an offer in compromise ranges from $4,000 to $7,500. An offer in compromise lets you pay off your tax debt for less than you owe. This program is complicated and has low acceptance rates. For best results, you should hire a tax attorney with experience handling OIC applications, calculating reasonable collection potential, and addressing penalties and interest that may influence the settlement amount.

Audits

How Much Does a Tax Lawyer Cost for an Audit?

Tax audit lawyers charge $2,000 to $3,500 for a straightforward audit, but for a more complex audit, the cost can be $5,000 or more. Generally, business audits cost more than individual audits, but it also depends on the complexity of your return. IRS audits involving multiple years, substantial unpaid taxes, or fail to file issues can significantly increase tax attorney rates.

Earned Income Tax Credit (EITC)

How Much Do Tax Lawyers Charge to Help With ETC Audits?

The earned income tax credit (EITC) is one of the most commonly audited tax credits. The IRS audits EITCs at a significantly higher rate than it audits tax returns in general.

If the IRS adjusts your return after reviewing your EITC claim, a tax attorney can help you contest the changes. Tax attorney fees for EITC representation vary, but they are often lower than full audit defense costs because these cases are typically narrower in scope. You can get a quote by contacting a tax attorney.

Penalty Abatement

What Is the Tax Attorney Cost for Penalty Abatement?

Tax lawyer rates for penalty abatement can range from $250 to $1,000 or more. Some tax attorneys charge a base rate for penalty abatement plus a percentage of the fees they remove. If you hire a tax attorney for penalty abatement, make sure that their fees aren't higher than the penalties you need to be removed.

These are just some of the services you can access from a tax attorney. When you contact a tax lawyer, they can go over the options for your situation and answer your questions about how much tax attorneys charge, what affects the tax attorney cost, and whether hiring a tax attorney is worth it in your situation. Before selecting a tax lawyer, you may want to get a few quotes from a few different professionals.

But keep in mind that fees should not be your only consideration. You also have to ensure the attorney has the experience you need.

How to Find an Affordable Tax Attorney Near Me

After asking, "How much does a tax attorney cost?", most people's second question is, "How do I find an affordable attorney near me?" To find a local attorney with affordable rates, talk with friends or family. Or look for local listings in your area.

Use TaxCure to search for a local attorney in your area for a more practical approach. We host a directory of tax professionals from all over the country. Using our site, you can search for tax attorneys and other tax professionals based on their experience with your particular tax issue. You can also narrow your search to ensure the tax attorney has experience with your state tax authority. Remember, you don't necessarily need a local tax attorney. You just need an affordable tax attorney with the right experience. You can meet virtually if the tax attorney isn't close to your home.

What to Consider When Hiring a Tax Attorney

If you're hiring a tax attorney, you need to consider their experience and customer reviews. Also, compare their fees to the costs of other tax attorneys. To ensure you hire the best tax attorney for your situation, consider asking the following questions.

• Are you experienced with my tax issue?
• Where are you licensed to practice? Can you help clients in my state?
• Who will work on my case? What are their credentials? Are they tax professionals?
• Do we have client-attorney privilege?
• How much do you charge? Do you charge a flat fee or an hourly tax attorney rate, and what determines the cost?
• What is your billing process?
• How will we communicate? What should I expect from this process?
• What tax resolution program do you recommend for my situation?
• Do you have experience with that type of tax resolution?
• Do you have reviews from other clients?

While talking with different tax attorneys, keep in mind that there are no "special programs." A tax lawyer cannot connect you with a special IRS program that isn't available to other attorneys. They can only help you apply for existing programs. If a company claims they can access unique IRS relief programs that others cannot, that is a red flag and not accurate.

However, experience is certainly a defining factor. A tax professional with a lot of experience in a certain area may be able to get you a better resolution than someone without experience. This is true even if they're dealing with the same IRS program.

Alternatives to Hiring a Tax Attorney

A tax attorney is not your only option. Certified Public Accountants (CPAs) and enrolled agents (EAs) can also represent you in front of the IRS. There are also tax resolution firms, and many people take care of their own tax issues. Here is an overview of what to consider when comparing tax attorney cost to the cost of alternative tax professionals.

CPAs and Enrolled Agents

CPAs and enrolled agents can handle the same issues as tax lawyers with the exception of tax crimes and Tax Court. In some cases, these tax pros are less expensive than the cost of a tax attorney. But it depends on the situation. You may want to talk to a few different professionals as you narrow down your choices.

Tax Relief Companies

Tax relief companies often employ tax attorneys. Although they have the right credentials to represent you, the attorneys at these companies cannot offer you attorney-client privilege. Unfortunately, some of the larger national tax relief companies are also notorious for overcharging for subpar services.

This industry has a lot of consumer complaints, and the Federal Trade Commission (FTC) advises consumers to avoid these companies. In most cases, you get better results and more transparent tax attorney fees if you work directly with a company where you know the professional that will be handling your case.

Do-It-Yourself Tax Resolution

You can take care of problems on your own, but a tax professional is an investment if you're dealing with a complex situation. They can help you avoid errors. They negotiate with the IRS. Their experience enables you to get a better resolution.

If you're thinking about tackling your own tax problems, here are some signs a DIY approach may be appropriate:

• You're comfortable dealing with your tax problems on your own.
• You understand the tax resolution options.
• You owe less than $10,000.
• You don’t question the amount owed and can afford to pay it over time.
• You don't have any unfiled returns.
• You're dealing with individual income tax rather than business taxes.
• The IRS has not issued a lien or put a levy on your assets.
• The IRS isn't garnishing your wages.
• You're not facing tax crime charges.
• You don't need to go to Tax Court.

On TaxCure, we have published detailed pages on tax solutions and resolution options. If you want to handle your own tax issues, you can find the information you need and links to IRS forms on our website. Note, however, that the complexity of certain tax problems is outside the scope of what we can cover online. You should contact a tax pro if you're dealing with a complex tax concern.

How to Get Quotes From Multiple Tax Attorneys

Using TaxCure, you can easily get quotes from multiple tax attorneys. On our site, you can search for tax professionals based on their experience handling unpaid taxes, IRS audits, penalties and interest, fail to file issues, or other specific tax matters. You can also narrow down your search so that you only see tax attorneys in the results.

Once you've searched on TaxCure, you can read different attorneys' profiles, see client reviews, and more. Then, you can contact as many tax attorneys as you like to get quotes. Our directory of tax professionals makes it easy for you to find a qualified, affordable tax attorney in your area.

Free Consultations From Tax Attorneys

Most tax attorneys offer free or no-cost consultations, and you should take advantage of this offering. During your free consultation, you briefly explain the issue. Then, the tax attorney gives you an overview of the options, explains how much tax attorneys charge for cases like yours, and helps you understand the likely tax attorney cost based on the complexity of your tax matter.

Free consultations can be a great way to get quotes from multiple tax attorneys. More importantly, these meetings give you a chance to learn more about the tax attorney's experience so that you can choose the right professional for your situation. Outcomes for audits, offer-in-compromise applications, partial payment plans, and other services can vary drastically depending on the tax pro's experience.

Get Help From a Tax Attorney Today

To get help now, search for a tax attorney today. Then, call for a free consultation to learn more. You don't have to deal with the IRS on your own. You can get trustworthy, experienced, and affordable help by searching for a local tax lawyer on TaxCure today.

FAQ

Are tax lawyers worth it?

Tax attorneys are often worth it when you’re facing serious tax problems such as unpaid taxes, fail to file penalties, IRS audits, or complex tax matters involving large tax bills or significant penalties and interest. They provide legal expertise, negotiation skills, and representation that other tax professionals cannot. If your situation involves potential legal exposure, complex financial analysis, or the need to negotiate directly with the IRS, hiring a tax attorney is usually worth the tax attorney's cost.

For basic tax questions or straightforward filings, CPAs or enrolled agents may be more cost-effective alternatives.

Do tax attorneys make more than CPAs?

Tax attorneys generally earn more than CPAs because their work often involves legal expertise, complex IRS matters, and representation in high-stakes tax problems. Their additional training and ability to handle legal tax matters typically lead to higher tax attorney rates.

However, highly experienced CPAs or those specializing in areas like forensic accounting or corporate taxation can sometimes earn comparable or higher incomes.

Do tax attorneys charge a flat fee or hourly rate?

Tax attorneys may charge either flat fees or hourly rates depending on the complexity of the tax matter. For predictable work, such as setting up installment agreements, filing unfiled returns, or preparing penalty abatement requests, flat fees are common. For more complex cases—such as defending IRS audits, negotiating offers in compromise, or handling fail to file investigations—tax attorney rates are often billed hourly, typically ranging from a few hundred dollars to several hundred dollars per hour.

Understanding whether your case is suited for a flat fee or hourly billing helps you better estimate how much tax attorneys charge.

What factors affect the cost of hiring a tax attorney?

Several key factors affect how much a tax attorney costs, including: the complexity of your tax problems, whether you have fail to file issues, the amount of unpaid taxes, any penalties and interest owed, the number of tax years involved, and whether you are facing IRS audits or enforcement actions.

More complex cases require more hours, more documentation, and often more negotiation with the IRS, increasing tax attorney fees.

Experience also influences tax lawyer cost—attorneys with decades of specialized tax experience typically charge higher rates.

Geographical location, urgency, and whether litigation is involved can also raise the tax attorney's cost.