Understanding Tax Lawyer Costs

Table of Contents

• Can a tax attorney negotiate with IRS?
• How much does a tax opinion cost?
• Does IRS forgive tax debt after 10 years?
• What is the difference between a tax lawyer and an accountant?

Introduction

When it comes to managing your tax affairs, it pays to have the right help. A tax attorney can provide the necessary guidance and legal advice to ensure that you are in full compliance with the IRS. But how much does a tax lawyer cost? The answer depends on a variety of factors.

Can a tax attorney negotiate with IRS?

Yes, a tax attorney can negotiate with the IRS. Depending on your situation, your attorney may be able to negotiate an installment agreement, an offer in compromise, or a penalty abatement. In some cases, a tax attorney may even be able to assist you in reducing your tax debt. However, it is important to understand that the IRS may not accept your attorney’s proposal. Therefore, it is important to make sure that you are working with an experienced attorney who knows the ins and outs of dealing with the IRS.

How much does a tax opinion cost?

The cost of a tax opinion will depend on the complexity of the issue and the attorney’s experience. Generally, tax attorneys charge an hourly rate or a flat fee. The hourly rate typically ranges from $150 to $400 per hour, while a flat fee could cost anywhere from $500 to $1,500. Additionally, you may be required to pay a retainer fee before any legal work is done.

Does IRS forgive tax debt after 10 years?

Yes, the IRS may forgive tax debt after 10 years. This program is known as the Offer in Compromise. This program allows taxpayers to settle their tax debt for less than the full amount owed. To qualify for this program, taxpayers must meet certain criteria and demonstrate their inability to pay the full amount owed. Additionally, you must be current on all filing and payment requirements.

What is the difference between a tax lawyer and an accountant?

The primary difference between a tax lawyer and an accountant is the type of services they provide. An accountant typically handles the preparation and filing of tax returns and provides general advice about taxes. A tax lawyer, on the other hand, offers more specialized services. Tax lawyers specialize in providing advice and representation on tax matters, such as resolving disputes with the IRS and negotiating installment agreements. Additionally, tax lawyers are familiar with the legal aspects of tax law, whereas accountants are not.

Conclusion

Determining how much a tax lawyer costs can be difficult to estimate. Rates vary widely and are often based on the complexity of the case and the attorney’s experience. However, it is important to remember that hiring the right tax attorney can save you time, money, and stress when dealing with the IRS.