Hiring a tax attorney vs. Dealing directly with the IRS
3 min readEach circumstance has advantages and disadvantages. While you may represent yourself, it may be in your best interests to employ a tax attorney. Tax lawyers are specialists in their fields for a reason, and they have the best chance of getting you positive outcomes.
Tax representation, on the other hand, is not always inexpensive. Tax lawyers often charge a fee (hourly vs. Flat rates) as well as predetermined fees for the sort of tax counsel provided.
To receive an exact estimate, visit with a tax attorney to discuss their compensation structure and costs. Every tax attorney is unique, but any reputable tax professional will meet with you for the first time at no cost and with no commitments. This is so you can get some advice on what they can do for you and determine whether the attorney is a good match.
Tax attorney fee structures
Tax lawyers are often compensated in one of two ways:
1. Hourly Rate: The vast majority of tax lawyers bill by the hour. Tax attorneys charge varied rates, but expect to pay between $200 and $400 per hour. Some of the most reputable and experienced lawyers may charge $1,000 per hour or more for their services.
2. Flat Fees: Some taxpayers may be able to bargain for a flat cost for legal representation against the IRS. Tax lawyers will often choose this alternative only if the problem is routine and can (in their opinion) be resolved swiftly. The flat fee is agreed upon before the lawyer begins working on the case and will not vary regardless of how much time the lawyer spends on it.
Hiring a tax attorney by the hour or for a fixed charge has advantages and disadvantages. In hourly situations, one hopes that the matter is handled soon to save further legal expenditures.
If you are worried about how you will pay for a tax attorney, inquire about payment alternatives with the business. There are companies that provide payment plans and other options to help make hiring an attorney more inexpensive.
IRS vs. Self-Representation
You may feel completely fine representing yourself in a basic installment arrangement or audit. However, in more complicated matters, you may not have much choice but to obtain legal representation—especially if your case is heard by the United States Tax Court.
Although the typical cost of a tax attorney may seem scary at first, do not let this dissuade you. Often, the only way to win a case against the IRS is to hire a seasoned, knowledgeable, and approachable tax attorney.
How much does hiring a tax attorney cost?
Though it is technically legal to represent oneself in an audit or U.S. Tax Court, the fact is that the odds are stacked against you. It may even be argued that the IRS wants people to represent themselves so that they can harass and intimidate them. Fortunately, tax lawyers and other specialists are available to advocate your case against the IRS.
If you are having tax problems, it is important to hire a tax lawyer. A lawyer can help you navigate the complex tax laws and represent your interests in court if necessary. Alternatively, you can try to deal with the IRS directly. However, doing this can be complicated and time-consuming. If you are not sure which route to take, polstontax.com can help you make the best decision for your specific situation.