Tax Attorney Fees

A tax attorney is very useful in solving complex tax issues and tax debt relief. The rates of tax attorney fees vary considerably and depend on the experience and expertise of the tax attorney. If a tax attorney has been in the field for many years and has good clients, you can expect the fees to be considerably higher than a tax attorney just starting out. If you are paying the tax attorney a monthly retainer, the fee might range from a few hundred dollars to more than a thousand dollars a month depending on the job description and duties carried out for the business.

Closing Costs

Tax attorneys usually charge a consultation fee of $75 to $250 for a preliminary consultation which determines the needs of the company and the retainer. A taxpayer or business needs to check out the tax attorney and the retainer agreement. They then come to a mutual agreement for and payment. A tax attorney might charge for services using any one or more of these options :

• Charge hourly for services rendered.
• Non-refundable retainer fee of $500 or more.
• A contingency fee where the tax attorney charges approximately 25% to 40% of the settlement charges or about 50% of a judgment for an arbitration or trail case.

Hourly Fee

Hourly fees are most practical both for the tax attorney and the client because fees (like contingency fees) usually result in one party getting more profits. However, the going rates of about $30,000 to $50,000 in hourly attorney time result in huge investment for the client. This is mainly due to cost incurred and hours spent in preparation as well as trail costs. The hourly fees charged by a tax attorney are based on factors which include complexity of the case, reputation, experience of the attorney and the area of specialization for which help is needed. The hourly fees are negotiable with the tax attorney.

It can be decided by the taxpayer having an open discussion with the tax attorney regarding the requirements of the company. Probable risk that the client or the tax attorney may face is also one of the key factors in deciding the hourly fees. Another factor to consider with hourly fees is the specialization area of the case and if it has a higher potential risk.

Flat Fee

Some firms as well as tax attorneys will charge a non-refundable retainer fee which is also known as a flat fee. In a flat fee situation, a single payment is made and other payments are not necessary.

Contingency Fees

A tax attorney may opt for a predefined, fixed percentage of the tax savings of the client as the attorney fee which is known as the contingency fee. A contingency fee involves payment to the attorney for legal services depending on a percentage of the recovery. The fee range can vary from 25 to 40% but the most common fee structure is about 33 1/3% of the gross amount recovered. Usually if the tax attorney wins a case for his client, the IRS is responsible for paying tax attorney’s fees and the client need not pay any fees out of pocket.