How Much Does a Tax Attorney Cost, and Is It Worth It?

No one wants to receive a notice from the IRS, but ignoring it will not make the problem go away. If you owe a significant amount of money or aren’t sure how to respond, a tax attorney can help.

The price of a tax attorney depends on what type of assistance you need. It can range from $500 for small cases, such as an installment agreement, to $100,000 for complex cases that may involve litigation.

Keep reading to understand how much a tax attorney could cost and whether one is worth the expense.  

Table of Contents

1. How much does a tax attorney cost?
   1. Flat fee vs. hourly rate
2. Is a tax attorney worth it?
   1. When it is worth it
   2. When it may not be worth it
3. Other options to consider
   1. DIY
   2. Taxpayer Advocate Service
   3. Certified public accountant
   4. Enrolled agent
   5. Tax relief company
4. How to find a tax attorney near me

How much does a tax attorney cost?

To understand how tax attorney costs break down, we interviewed Logan Allec, owner of Choice Tax Relief. Allec uses three broad categories when describing IRS cases: small, medium, and complex. Prices vary by attorney and firm, but you may pay roughly the following.

Case level	Examples	Cost
Small	Hold on collection activity, installment agreement	$500 – $1,500
Medium	Settlement on a tax debt of $100,000 or more, complex audit, or appeal	$7,500 – $12,000
Complex	Tax issues involving business owners with multiple entities, U.S. Tax Court litigation	Up to $100,000 or more, depending on complexity

The 2024 Legal Trends Report from legal technology firm Clio reviewed low firm rates from that year. It found that tax attorneys charged an average of $382 per hour.

Actual rates depend on factors such as where you live, the experience of the attorney, and the complexity of your case. Just as with any service, you’ll find attorneys working at a variety of price points. For instance, the 2023 Economics of Law Survey by the State Bar of Michigan found that typical tax attorney fees ranged from $300 to $700 per hour.

If you don’t have the time and the knowledge base, you should hire an attorney.

Flat fee vs. hourly rate

Tax attorneys not only charge different rates, but they may also use different billing models. According to Allec, “The more traditional model is hourly billing. That has been changing, though. A lot of people are going more to a flat fee.”

As you search for a tax attorney, consider the following.

Hourly rate:

• Only pay for the time spent on your case.
• Fees may be lower for simple tax matters, but they can quickly add up if meetings are required.
• May not require payment of an upfront retainer or similar fee.

Flat fee:

• Provides predictability for budgeting.
• It could be more expensive than hourly billing for a minor matter.
• May require an upfront payment

Tax attorneys are more likely to charge a flat fee for routine matters, such as penalty abatement requests or Offers in Compromise (OIC). Expect to pay an hourly charge for complex cases and those that include an appearance before the U.S. Tax Court.

Is a tax attorney worth it?

A tax attorney can help remove stress and worry from an encounter with the IRS.

If you are facing a significant tax bill, they may be able to save you money. Meanwhile, if you are facing a potentially criminal matter, such as failing to disclose foreign bank accounts, an attorney is essential.

When a tax attorney is worth it

You’ll want an attorney in your corner when you:

• Owe more than $10,000 to the IRS.
• Feel intimidated by the prospect of communicating with the IRS.
• Don’t understand what the IRS is requesting or your options.
• Have a complicated tax situation, such as self-employment or business ownership.
• Failed to disclose foreign bank accounts.
• Have valuable assets to protect from seizure.
• Committed tax fraud or have done something that could be interpreted as tax fraud.

“Make sure whoever you’re working with has lots of years of (tax) experience,” advises Allec. Some attorneys are generalists, meaning they handle cases of all kinds. However, a generalist may not have the expertise needed to handle complex IRS cases.

When a tax attorney may not be worth it

On the other hand, there are situations in which you may be able to save money and go without an attorney. These include the following:

• You owe less than $10,000 to the IRS.
• You are comfortable communicating with the IRS.
• An IRS Revenue Officer has not yet been assigned to your case.
• You have a simple tax return.
• There is no indication of tax fraud or illegal activity on your account.

Other options to consider

There are other finance professionals—notably certified public accountants and enrolled agents—who are well-versed in tax issues. These professionals can assist with a variety of IRS-related issues, but not all of them are qualified to represent you before the U.S. Tax Court.

You may also want to handle your tax issue yourself, or you can turn to the government’s Taxpayer Advocate Service if you qualify for their assistance.

Here’s more information on each option.

DIY

The do-it-yourself (DIY) route is best for simple matters. For instance, you may have forgotten to include a form with your tax return, or you may want to set up a payment plan to pay back taxes.

If you owe less than $10,000, the IRS is going to guarantee you an installment agreement.

You can also make an OIC, which could allow you to settle your tax debt for less than you owe. The IRS website includes information on requesting a payment plan or applying for an OIC.

For other matters, the IRS notice should state what is required of you. If you feel confident that you understand the request and can fulfill it, the DIY route might be right for you.

Taxpayer Advocate Service

The Taxpayer Advocate Service (TAS) is an independent agency within the IRS. If you plan to handle your tax issue yourself, you’ll find helpful information on the TAS website.

The TAS may also be able to help directly if you have a financial hardship, have experienced a delayed response or other IRS system failure, or have not received fair and equitable treatment.

Visit the TAS website to learn more about their services and see if you qualify for assistance.

Certified public accountant

Like attorneys, CPAs can specialize in different areas, so be sure to select one with extensive tax experience. You might pay less for services from a CPA, although the fees charged by accountants and tax attorneys can be similar for simple matters.

“If you willfully did something wrong, do not talk to a CPA for that,” Allec cautions. “An accountant is obligated to spill all the beans if subpoenaed.” Instead, you’ll want to use a tax attorney since communication between a client and a lawyer is privileged and confidential.

Enrolled agent

An enrolled agent is a tax practitioner who is authorized to represent people before the IRS. They must pass a three-part examination that tests knowledge on topics such as personal and business tax returns or have experience as a former IRS employee.

“It doesn’t matter the initials behind someone’s name,” Allec says. “You want someone who specializes.”

As with a CPA and tax attorney, be sure an enrolled agent has experience relevant to your case.

Tax relief company

Tax relief companies specialize in assisting taxpayers with issues such as:

• Reducing or managing tax debt
• Setting up payment plans
• Eliminating penalties

These companies often employ a combination of tax attorneys, CPAs, and enrolled agents. Some may take only certain cases and charge a discovery fee to evaluate your situation.

See our picks for the best tax relief companies to learn more about these firms. Anthem Tax Services is the top-rated company in our research. TaxRise is another that we recommend for OIC services.

How to find a tax attorney near me

If you are ready to hire an attorney, you could search online for “tax attorney near me.” However, there is no guarantee that those results will direct you to the best attorney for your situation.

Instead, start by looking up your state’s bar association, which will likely have a searchable database. As you evaluate attorneys, read reviews and check for formal complaints.

An even easier option is to look for a recommended tax relief company. Many have vetted tax attorneys on staff.

Whatever you do, don’t delay. Waiting to address a tax problem can be expensive, as additional fees and interest can be tacked on each day.