Hiring the best tax attorney will depend on several factors. A tax attorney is a lawyer certified to deal with IRS tax code and provide the needed advice on the complicated legal issues associated with IRS. Mostly, tax attorneys deal with trusts, tax disputes, business law, and estate planning.
If you are in one of these sticky situations, or any issue from the IRS, then hiring a tax attorney is better than representing yourself. Before you do, here is everything you need to know about hiring the best tax attorney.
When Is It Necessary to Hire a Tax Attorney?
There are a number of reasons why you might need to hire a tax attorney. When you are in a sticky situation with your taxes, it’s best to leave things to the professionals.
1. When making a payment to the IRS
If you need help with IRS payment, hiring an attorney for legal help will come in handy. Dealing with the IRS can be daunting. According to the Tax Foundation, the United State tax code, that is used by the IRS, is approaching 10.1 million words with the federal revenue code taking 2.41 words and tax regulation having 7.66 words.
This is a lot of jargon for someone who does not deal with the IRS regularly. A tax lawyer knows how to maneuver the jargon and help you with the payment quickly.
2. If IRS slaps you a tax audit
The Internal Revenue Service has lawyers on call working on their case, and if you have no one to help you negotiate with them, you could be looking at dense jargon you don’t understand and losing revenue you would have otherwise salvaged.
If you get the best tax attorney, they will help you settle the debt for less you owe during the negotiations. They will make an offer for less, request for a payment plan or seek penalty waiver or decrease.
3. If you receive a tax notice
The IRS sends notifications every once in a while, to submit information to taxpayers. The information could be anything from an error to a remind of debt. Once you receive such a notice, you may not be sure how to proceed.
In this case, talking to tax lawyer will help you get answers to your IRS questions. The attorney will also tell you how you should proceed and advice if you need to hire them for the negotiations or it is something you can handle on your own.
4. If you are facing criminal charges
In some events, the IRS will charge you as a criminal. Such cases need representation, and a tax attorney is your best chance of handling it. Tax evasion and fraud are the most common cases the IRS charge under criminal offense.
These charges should be taken seriously because eight out of ten people charged are sentenced to prison.
Tax Attorney vs. CPA vs. Enrolled Agent
Not every tax professional is right for every situation. CPAs handle tax preparation and planning but cannot represent you in court. Enrolled agents can represent you before the IRS but not in Tax Court. Tax attorneys have attorney-client privilege, can represent you in any court, and handle criminal tax matters. If you face criminal charges, need Tax Court representation, or want maximum legal protection, only a tax attorney will work. For routine audits or payment plans, an enrolled agent might cost less and work just as well.
Where Can You Find a Tax Attorney?
If you need a tax attorney, your first place to search should be with a trusted professional. This could be your friend or family members who have been in the same situation. Also, you can check with your banker, accountant, or lawyer.
They are likely to know the best tax attorney. If all these methods do not yield a good lawyer, visit the bar association in your area for a recommendation.
Real-World Example
A few months ago, our Toledo tax lawyers represented a contractor from the Ukrainian Village area of Toledo who ran his own home renovation business. He’d been doing work for General Motors employees and other clients around Ridge Road for eight years. When the IRS sent him a CP2000 notice claiming he owed $47,000 in unreported income, he panicked. The problem started when his bookkeeper made errors on his 1099 forms. We met him at a coffee shop near The Shoppes at Parma to review his records. After examining three years of bank statements from KeyBank on Pearl Road, we found the IRS had double-counted several large deposits. We filed an amended return with proper documentation showing the actual income flow. We also negotiated a payment plan that let him pay $12,000 over 18 months instead of the original $47,000. The IRS accepted our documentation and waived $8,300 in penalties. He kept his business running and avoided bankruptcy. This situation happens more often than you’d think, especially with contractors and small business owners in Cuyahoga County who handle multiple income sources.
Is the Tax Lawyer The Right One for You?
Once you find a lawyer you like, you might want to have a chat with them to determine if they are a good fit for you. Do not assume they are the best option without explaining your case to them first.
If it takes paying a consultation fee first, do so, explain your situation and get details on how the lawyer will handle the case if you are to hire them. From this discussion, you will tell if they are the right lawyer for you or not.
Red Flags to Avoid When Looking For a Tax Lawyer
Never hire an attorney who guarantees specific outcomes or promises to “eliminate” your tax debt. Avoid anyone demanding full payment upfront without a written agreement. Be wary of attorneys who won’t provide references or have multiple bar complaints. Skip those who pressure you to sign immediately or claim special relationships with IRS agents. If they suggest hiding assets or falsifying documents, run. Check your state bar website for disciplinary actions. Legitimate attorneys explain risks honestly and document everything.
What Qualifications Do Tax Lawyers Need?
The minimum qualification any tax lawyer should hold is a Juris Doctor commonly referred to as J.D. they must also have a license to practice. This information is available at the state bar.
A lot of tax lawyers will also hold a Master of Law in taxation, which is an added advantage because it shows they have specialized. If you are lucky, you will find a lawyer who is also a certified public accountant.
In some events, the IRS will charge you as a criminal. Such cases need representation, and a tax attorney is your best chance of handling it. Tax evasion and fraud are the most common cases the IRS charge under criminal offense.
These charges should be taken seriously because eight out of ten people charged are sentenced to prison.
Tax Attorney Cost and Fee Structure
Tax attorneys typically charge $200-$500 per hour, with specialized attorneys in complex cases charging up to $1,000 hourly. Some offer flat fees for specific services: $2,500-$5,000 for audit representation, $5,000-$15,000 for appeals, or $10,000+ for criminal defense. Payment plans are common. Initial consultations run $250-$500, though some attorneys credit this toward your case if you hire them. Retainers typically start at $2,500-$10,000. Ask about fee structures upfront. Get everything in writing. Understand what’s included and what costs extra.
What to Bring to Your First Meeting With a Tax Lawyer
Gather all IRS notices and correspondence. Bring three years of tax returns. Include bank statements showing income sources. Provide documentation for any deductions claimed. Have your business formation documents ready if applicable. Create a timeline of events. Write down specific questions. Bring identification and proof of address. The more organized you are, the faster your attorney can assess your situation and provide accurate fee estimates.
Take Action Before Your Tax Problem Gets Worse
Tax problems compound daily. Interest and penalties add up while you wait. The IRS has ten years to collect most tax debts, and they use that time aggressively. They can garnish wages, freeze bank accounts, and place liens on property without warning. A qualified tax attorney knows which IRS programs apply to your situation.
They understand when to fight and when to negotiate. They protect you from saying the wrong thing during IRS conversations. Most people who try handling IRS issues alone end up paying more than necessary or agreeing to payment terms they cannot afford. Your financial stability depends on getting proper representation now.
Call our tax attorneys today for an assessment of your situation. One consultation could save you thousands of dollars and months of stress. The right attorney makes the difference between resolution and financial disaster.
