Tax attorneys charge between $200 and $600 per hour or flat fees ranging from $1,000 to $5,000 and upwards, depending on their experience, the complexity of the tax solution, and the services required. Some firms also offer a free initial consultation for IRS collection cases and a paid consultation for complex cases such as the FBAR/international cases, syndicated conservation easement (SCE) defense, and other high-exposure issues.
In this guide, we will break down how tax attorneys charge based on case complexity and common IRS tax issues – and why, despite their fees, they may save you thousands of dollars or more, while also defending your assets, protecting your business, and helping you get real relief from your tax problems.
Schedule a consultation with us to get a customized quote for your specific tax problem – learn more about how we negotiate with the IRS on behalf of our clients.
Key Takeaways
- Tax attorney billing structures: hourly rates, flat fees per service, and retainers for ongoing cases.
- What influences your cost: complexity of the tax problem, amount owed, years involved, service needed, and the attorney’s experience.
- Tax attorneys vs. CPAs: Although a CPA can represent you in front of the IRS, a tax attorney is usually the better option for complex disputes, collection cases, and Tax Court claims.
- Attorney-client privilege: Only a licensed attorney can offer attorney-client privilege to protect you in fraud or criminal investigations.
- Take advantage of the free consultation (when it’s offered): This is the best way to learn how the attorney can help and what it’s likely to cost.
How Tax Attorneys Charge (Billing Structures)
All tax attorneys have their own billing structures, and they may use different options depending on the tax problems. However, most attorneys use the following structures, or mix them, depending on the issue at hand:
- Hourly rates: For this model, you’re billed only for the time spent. While this can work for most straightforward tax problems, the costs can add up quickly if your case is complex. Firms may charge different hourly rates depending on the level of experience of the person doing the work.
- Flat fees: This is when you pay a specific amount for the entire service. It’s common for defined services such as penalty abatement, installment agreements, and offers in compromise (OICs).
- Retainers: For ongoing cases, attorneys may require an upfront deposit to bill against, as work is completed. The retainer may be used against flat fees, an hourly rate, or to cover miscellaneous charges, but in all cases, you’ll know what’s happening upfront.
- Contingency fees: This is rare in tax law, but sometimes applicable. For example, some tax attorneys can charge you a flat rate plus a percentage of the recovered tax refund (for example, 20 to 40% of the refund). The IRS Circular 230 imposes limitations on tax attorneys’ use of contingency fee structures, which is why you’ll only see this arrangement in very specific billing situations.
How Much Do Tax Attorneys Charge by Service?
Here’s an overview of the average tax attorney fees for different IRS services, but remember that the charges vary based on the complexity of your case and other factors. This is just a guide to industry averages, not a quote or estimate for specific services:
- Unfiled returns (per year): This is always the first step in resolving all tax problems. All tax relief options are only applicable if a taxpayer has filed their tax returns. Tax attorneys charge $400 to $1,000 or more, depending on the number of years you’ve not filed. Keep in mind that if you have unfiled returns for multiple years, they all must be filed separately.
- Installment agreements (IA): This IRS program allows taxpayers to pay their tax debt in monthly payments. Tax attorneys charge an average of $1,500 to $4,000 and may charge more for businesses.
- Partial payment installment agreement (PPIA): While this is a kind of IA, it might cost more ($3,000 to $6,000) because it requires more financial documentation than most standard payment plans.
- Penalty abatement: This IRS program offers penalty relief, and reasonable cause cases can cost $750 to $3,000 or more because they require additional documentation. If charged on a contingency basis, fees are often 20% of the abated amount plus potentially a flat fee for application processing.
- Offer in Compromise (OIC): With this relief option, you can settle with the IRS for less than what you owe, and tax attorneys charge $3,500 to $8,500. The IRS is very strict with OICs, so the applications are very comprehensive. In most cases, the fee includes an appeal in case the offer is denied, but most experienced attorneys only push through applications when they have a higher likelihood of approval by the IRS.
- Currently Not Collectible (CNC) status: When your tax account is put on CNC status, the IRS temporarily stops all its collection activities until you’re financially stable to pay the IRS without experiencing hardship. This also requires financial disclosure, meaning lots of documentation. It costs $2,000 to $4,500.
- Innocent spouse relief: This tax relief option allows you to get relief from certain tax liabilities due to your spouse or former spouse, if you meet the requirements. Attorneys charge $3000 to $6,000, depending on what kind of relief you’re applying for.
- Lien help, levy release, or CDP appeal: These cases are always time-sensitive and require immediate action, and tax attorneys charge $1,500 to $5,000.
- IRS audit representation: If you’re being audited, it’s critical to have representation. The attorney acts as the liaison with the auditor, providing documents and defending tax positions. They charge $2,500 to $10,000 or more, depending on complexity.
- Tax court/litigation: Tax attorneys ensure your rights are protected during litigation, advocate for you, and negotiate with the IRS on your behalf. They charge $10,000 to $50,000, but generally, attorneys charge hourly for litigation rather than using a flat-fee billing structure.
- Trust Fund Recovery Penalty (TFRP) defense: If the IRS is threatening to collect trust fund taxes from you, a tax attorney can represent you during the 4180 interviews to defend you against responsible person allegations. The stakes are high because the IRS can come for your assets for 100% of the trust fund taxes, and tax attorneys charge $5,000 to $15,000.
- Employment/payroll representation: This is usually paired with TFRP issues and can range from payroll tax debt resolution to work classification disputes. Tax attorneys charge $5,000 to $15,000.
- ERC (Employee Retention Credit) audit defense: If your ERC claim was audited or denied, an attorney can help you deal with the IRS. Tax attorneys charge $5,000 to $25,000 or more because the work requires extensive documentation, but the fee depends on the number of quarters under audit, the number of your employees, and other case-specific factors.
- Syndicated conservation easement (SCE) defense: This is one of the high-stakes legal battles between the IRS and real estate investors; it’s ongoing. Tax attorneys charge $5,000 to $25,000 or more for work assisting investors in making refundable deposits to stop accruing interest, pursuing state settlements, and raising investor-side defenses on disputed tax liabilities.
- International, FBAR, and Voluntary disclosure: The IRS is very aggressive about unreported offshore money and imposes heavy civil penalties and potential criminal prosecution for these tax issues. In most cases, you’ll need a tax attorney who has previous experience dealing with helping US residents and expats resolve these tax issues, and they charge $3,500 to $15,000 or more, depending on the case.
- Georgia DOR representation: This can be audits, unfiled returns, or state collections such as wage garnishment and bank levies. It costs $2,000 to $7,000, depending on the service needed and the complexity of the issue. State tax authorities are always much more aggressive with wage garnishments and levies than the IRS.
It’s important to note that this isn’t the Wiggam Law payment structure, but rather the general range of what tax attorneys charge. If you want to know our specific rates, please schedule a consultation with us for a quote. At Wiggam Law, every case is unique, and until we hear it and evaluate it, we can’t really put a tag on it.
What Affects How Much You’ll Pay?
There are many factors that affect how much a tax attorney will cost, and understanding what drives those costs can help you budget more effectively and avoid surprises. Here are some common factors that influence how much you’ll pay:
Complexity of your case
All tax issues are different. For example, simple cases like penalty abatement or setting up a streamlined monthly payment plan may cost less than getting help with Currently Not Collectible (CNC) status or a Partial Payment Installment Agreement (PPIA), which requires extensive preparation and deep financial disclosure. But in some situations, the reverse may be true, and you may see higher fees for a penalty abatement claim than for a CNC application, for example.
Similarly, a basic installment agreement for a $15,000 debt is straightforward, whereas negotiating a plan for a $500,000 tax debt often demands aggressive, high-level negotiation to protect your assets.
Generally, expect a higher fee if your case involves:
- Over $100,000 tax debt
- Allegations of tax fraud and intent to evade
- Unfiled returns dating back several years
- Payroll tax disputes, business tax audits, or sales tax liabilities
These cases require in-depth financial reviews, documentation, negotiation, and hearings, all of which cost time and money.
Tax attorney experience
A tax attorney who is fresh out of law school will not charge the same as a seasoned attorney, which is why hourly charges range from $200 to $600 and sometimes even fall outside of those ranges.
It’s no harm if you hire a fresh-out-of-school attorney to cover tax issues, such as penalty abatement or a year of unfiled tax returns, where the risk factor is lower. However, if you’re dealing with complex issues such as audits or tax evasion, it’s best to consider an experienced tax attorney.
Individual vs business taxes
While it depends on the tax issue, in general, business tax problems are considered more complex than individual cases. In most cases, business taxes carry higher stakes in terms of penalties and enforcement risks, and the IRS makes it harder for businesses to set up payment plans or qualify for relief than for individual taxpayers.
You can, therefore, expect to pay more when dealing with business taxes.
Federal and state overlap
You’re required to file federal and state taxes separately – every state has its own governing tax laws that differ from federal laws. And when you’re a business owner, you’ll often end up dealing with multiple state agencies and different types of taxes.
If you have state and federal tax problems that require resolving, you’re likely to pay more compared to when you only need federal tax or state tax help.
What It Costs for Complex and Specialty Matters
Certain tax problems require niche specialization, knowledge, or experience, such as:
- Trust Fund Recovery Penalty and payroll taxes
- ERC audit defense
- Syndicated conservation easement defense
- International/FBAR
- Voluntary disclosure
- Tax litigation
In these situations, the stakes are high, and the best protection is working with an experienced tax attorney. In most cases, the potential reward is well worth the extra fee.
A good example of high-stakes recovery is the Kwong Case, which creates an argument that the IRS improperly charged underpayment interest and failure-to-pay penalties during the COVID-19 disaster period.
If you work with Wiggam Law to secure your pandemic-era interest refund or abatement, here is how our fee structure breaks down:
- $5,000 flat fee for up to five refund claims (plus $1,000 per additional claim)
- 20% contingency fee on the recovered amount
Is this worth paying for? Let’s explore:
Since the Kwong case focuses on interest abatement for interest accrued during COVID, that can translate to roughly $16,000 for every $100,000 of principal debt. That means a $500,000 tax debt would have incurred about $80,000 in interest during the COVID period.
If the IRS approves the request, from an $80,000 recovered refund, you would pay Wiggam Law $21,000 ($16,000 contingency fee + $5,000 flat fee). Your final net refund would be $59,000, and we do all the heavy lifting.
Is a Tax Attorney Worth the Cost?
A tax attorney can help manage the stress that comes with dealing with the IRS, especially when you have a significant bill – but does this really justify the cost? Can’t you just hire other tax professionals? Well, let’s see how they compare:
Certified Public Accountants (CPAs)
CPAs can help with tax preparation, accounting, and IRS representation. However, they can’t provide attorney-client privilege. While there is a limited statutory accountant-client privilege, it does not apply in criminal cases. They also cannot represent you in tax court unless they’ve taken the United States Tax Court Non-Attorney Examination.
CPAs are essential for compliance, but they’re not ideal for fraud risk, legal action, and enforcement. And even in basic collection cases, you should only work with a CPA who has experience in that niche.
Enrolled Agents (EAs)
EAs are federally licensed to represent taxpayers before the IRS, and they can help when you’re dealing with simple notices and disputes. They can also help if you need someone to handle IRS correspondence or file resolutions, such as an installment agreement.
However, EAs are not lawyers. If your case involves a criminal investigation, legal risk, or a high-dollar negotiation, an EA may not have the necessary tools or authority to fully protect you.
National tax relief companies
National tax relief companies are often a risky option. Many use aggressive marketing language to lure in taxpayers, then oversell and underdeliver on services. Others are fly-by-night companies that use ghost preparers for unfiled returns or refund claims. These “ghost preparers” often manipulate deductions but refuse to sign the paperwork, leaving taxpayers liable when the IRS detects errors, and of course, the preparer is nowhere to be found by the time you notice the problem.
Conversely, dedicated tax attorneys are bound by strict ethical standards and sign all documents when they help with tax resolution. They also use legal tax-relief methods to reduce the tax bill and protect clients from enforcement.
DIY tax resolution
If you owe less than $10,000 and your income and expenses are very straightforward, you may be able to deal with the tax resolution by yourself. But if you owe a substantial amount or are facing an imminent tax levy, you may want to avoid tackling the matter on your own.
A DIY approach can be risky because the US tax code is really complex, and one mistake – a missed deadline or unchecked box – can increase penalties, delay relief, or expose you to enforcement actions.
What It Looks Like to Work with Wiggam Law
At Wiggam Law, we offer a free 30-minute consultation. Our free consultations are with a non-attorney and generally best suited to collection cases or getting help with undisputed tax debt – but we’re always happy to start with a free consultation if you just want to ask a few questions before connecting with an attorney.
We charge an industry-standard consultation fee for complex matters, such as conservation easement cases, FBAR/international issues, tax court litigation, and similar high-exposure issues. In these consultations, you’ll talk directly with an experienced attorney.
We are also very transparent about our fee structures; you’ll know what you’re paying, why, and when additional fees may come into play. This way, you’ll never have to deal with surprise costs with us.
If you need help with any tax problem, schedule a consultation with us, and we shall help you get the best possible outcome in your case.
Frequently Asked Questions (FAQs)
Here are common questions we get on tax attorney costs:
Are tax attorney fees tax-deductible?
Not as an individual; legal fees paid to resolve personal tax problems are non-deductible. However, as a business, you can deduct fees for resolving tax issues, getting advice for tax issues, or paying for tax preparation related to your business.
Do tax attorneys offer payment plans for their fees?
Yes, many tax attorneys offer payment plans if a case involves a large balance or a complex IRS matter. They may, however, require an upfront retainer followed by monthly payments, while others may offer flexible financing options. Every tax attorney is different, so be sure to ask about payment arrangements at your initial consultation.
Do tax attorneys ever work on contingency (only paid if they win)?
Not often. Most tax resolutions involve compliance, audit defense, or monthly payment negotiations, not the recovery of an asset. The IRS also limits when the tax attorney can use this payment structure. However, tax attorneys may use, and are legally permitted to use, contingency fee structures for specialized tax refund recovery claims or when contesting an active IRS audit assessment.
Is hiring a tax attorney worth it if I owe less than $10,000?
It depends on your circumstances. If your tax problem is straightforward, such as setting up an IRS payment plan, you can resolve it yourself. However, if your case involves audits, penalties, liens, levies, or legal disputes, a tax attorney’s guidance can still be valuable, even if you owe less than $10,000.
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