Tax Lawyer: 3 Perfect Reasons To Find One and Fees?

Okoma V.
7 Min Read

Wondering when you need a Tax Lawyer or do you just want to get along with an accountant instead?… Well, getting an accountant is very important as well as getting a Tax Lawyer.

In fact, you need the help of both an accountant and a tax lawyer in your everyday needs. However, the help of a tax lawyer is more important to a business and has more advantages.

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With the help of a tax attorney, you wouldn’t just be wrangling with numbers, rather you are also fighting the law. Moreover, there are so many things an accountant can’t handle but Tax attorneys can.

Of course, you don’t have to wait till you are in trouble or have issues before you get a tax attorney because they can handle both past problematic events and help plan your best course in the future.

Meanwhile let’s answer some questions about tax lawyers, who they are, tax lawyer fees, and when you need to find a tax lawyer.

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Who is a Tax attorney?

Tax attorneys are lawyers who specialize in the complex and technical field of tax law. They’re best for handling technical and legal issues associated with your tax situation.

They have a strong knowledge of tax law. They assist individuals to solve tax-related issues by filing appeals of tax court decisions and stand as a mediator with the Internal Revenue Service.

Tax lawyers can also give you advice that would help you make the most of your tax credit and save money.

How much are the Tax lawyer fees?

Tax attorney’s fees vary, some may charge hourly while some may charge a flat-rate fee.

Most tax attorneys charge Hourly. Although every attorney will charge a different hourly rate, most of them would charge between  $200 to $400 per hour.

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While some highly experienced attorneys or those working in big firms in large cities can charge more than $1,000 per hour.

Typically the cost of hiring a Tax Attorney can be folded in average prices, which are commonly charged for tax services.

  • Installment Agreement: $750 – $1,500
  • Offer in Compromise: $3,500 – $6,500
  • IRS Audit (simple): $2,000 – $3,500
  • Penalty Abatement: $1,000 – $2,500
  • 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 an attorney you hire, and the complexity of your case.

When do I need a tax lawyer?

There are three (3) basic reasons why you would need a tax attorney.

  • If you have a taxable estate
  • For a Business
  • For Legal Issues

1. Taxable Estate

The Internal Revenue Service (IRS) has its hands on a lot of businesses and not all of them certainly pertain to personal tax returns. Estates are not exceptional.

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Estates have also become taxable as of the year 2020 and that is only if the total value of the estate at the time of one’s death exceeds $11.58 million, or $23.16 million if the person is married.

Read also: How to Write a Check to Yourself | Simple Steps

But unfortunately, that’s a lot of value so most people won’t have to bother about estate tax planning.

However, those whose estate is worth this much would have to pay an estate tax of up to 40% of the balance over the applicable threshold.

A tax lawyer can help you devise estate-planning strategies to help you stay below the exemption threshold and avoid a significant portion of your estate going to the IRS.

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2. For a Business

If you are setting up a new business, either a corporate business or a sole proprietorship you would have tax ramifications.

Tax attorneys can advise you about the structure and tax treatment of your company, including some non-tax issues you might not otherwise have considered.

Also if you are engaging in an international business, you’ll need help with contracts, tax treatment, and other legal matters. Here the help of a tax lawyer can be indispensable in this type of situation.

If your plan is to bring a lawsuit against the IRS, or you’re under criminal investigation by the IRS, or if you want to seek an independent review of your case before the U.S. Tax Court, you’ll require the help of a knowledgeable and experienced tax lawyer.

Especially if you’ve committed tax fraud, such as knowingly claiming deductions or credits to which you weren’t actually entitled.

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Read also: How to Endorse a Business Check, When and How to Sign It

For these, you have to have a strong relationship with your lawyer, and anything you say to or confide in them is typically privileged.

This means they’re under no legal obligation or duty to divulge to the court anything you tell them. This is not always true of accountants.

References

Vault.com – Tax Attorneys

New England law – The study of tax law

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The Balance – What to Look for in a Tax Attorney Lawyer Edu – Tax Lawyer Careers

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