What Does A Tax Attorney Do?

Tax attorneys help clients navigate tax disputes and utilize available tax deductions, credits, and exemptions. However, not all tax attorneys do the same thing. Most local tax attorneys focus on tax resolution; or more specifically, help clients resolve tax debt with the IRS and State tax agencies. For instance, tax resolution attorneys will represent clients in offers in compromise. In contrast, transactional tax attorneys help clients reduce their tax liability in transactions or comply with tax law. For example, transactional tax attorneys may assist in business entity formation, trust and estate matters, and commercial transactions to mitigate adverse tax consequences.

What Do Tax Resolution Attorneys Do?

Tax resolution is a broad term that generally refers to resolving tax debt with a tax agency. This market is comprised of licensed attorneys, certified public accountants, enrolled agents, and unlicensed individuals. However, “tax attorneys” are licensed attorneys who may be admitted to practice in U.S. tax court.

Tax resolution attorneys help clients resolve tax debt with the IRS and State tax agencies through CNC status, offers in compromise, installment agreements, and statute of limitations expiration.

How Much Do Tax Resolution Attorneys Charge?

There is no one standard fee for a specific service as different attorneys charge different amounts. However, many tax resolution attorneys offer flat fees for specific services. For instance, a tax attorney may charge a flat fee of $8,000 to prepare an offer in compromise application.

Instead of a flat fee, tax attorneys may charge an hourly rate when the total number of hours or amount of work required to complete the task is difficult to estimate. For instance, tax attorneys often bill their clients by the hour in tax litigation matters as litigation is unpredictable. Likewise, tax attorneys often charge an hourly rate in audit defense as the total amount of work required is difficult to estimate at the outset of representation.

So, What Kind of Tax Attorney Do You Need?

If you need help getting out of tax debt, you probably need a tax resolution attorney. While these attorneys may not specifically list themselves as tax resolution attorneys, most likely the majority of “tax attorneys” you find on the internet will practice tax resolution.

If you need help navigating the tax consequences of a transaction or business formation, you probably need a transactional tax attorney. These attorneys often work in law firms, but some experienced attorneys also work in solo practice.

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