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What Does a Tax Attorney Do, and Should You Hire One?

There’s nothing fun about dealing with a tax issue. You’ll be there, minding your own business, only to get an IRS notice, a letter about an audit, or realize that you have no idea what tax structure is best for your business. Don’t worry; most people get confused and stressed about taxes. It is, after all, one of life’s least fun adulting tasks.

Fortunately, there are people whose job it is to understand taxes inside and out. They’re called tax attorneys. If you’ve wondered what a tax attorney does and if you should hire one, this article will explain everything you need to know about their skill sets and the services they provide.

Table of Contents

What is a tax attorney?

A tax attorney is a professional who attended law school, passed the bar exam, and specializes in tax law. Sometimes, tax attorneys are also certified public accountants, but not always. 

These attorneys have a deep understanding of tax law and represent individual clients and corporations on a variety of tax issues, from the simplest to the most complex. They are trained to handle tax situations that might require an understanding of multiple laws, new policies, and upcoming tax changes.

The difference between a tax attorney and an accountant or tax preparer is that tax attorneys have a license to provide legal advice and represent clients in court. When clients go to tax attorneys for help, tax lawyers are bound by the attorney-client privilege, which means you can go to an attorney for help with confidential issues.

Areas of focus

Usually, tax attorneys specialize in a specific area of tax law because the field is incredibly broad. Here are some examples:

  • Individual IRS disputes
  • Business formation and taxation
  • Estate planning, including gift tax planning
  • Real estate purchases, sales, and tax structuring
  • International taxation for individuals and businesses.

It’s important to find an attorney who specializes in your specific tax matter. For example, an attorney who spends their day working on international taxation research and compliance will be better equipped to help someone with an international business than a tax attorney who specializes in real estate mergers.

How can tax attorneys help you?

Tax attorneys have specialized skills that go beyond simple tasks like filling out business forms or calculating individual tax deductions. Their strength lies in their knowledge of the tax code and in their ability to interpret and apply it to help people and businesses. 

Although these attorneys help people who are in some type of tax trouble, they can also help clients avoid tax issues by properly setting up businesses and maintaining compliance. Here are a few ways that tax attorneys can help you, whether you need individual help or need to consult one for business advice.

Negotiate agreements

Tax attorneys can help individuals and companies during negotiations, both with the IRS and between businesses. They can also represent you or your business before the IRS if you’re being investigated or have received notice of a tax lien. A tax attorney can help clients in a variety of ways, including securing payment plans if you owe back taxes.

According to the IRS, the Chief Counsel received 51,704 tax cases in 2024. These cases included issues such as criminal taxes, taxpayers contesting that they owed additional taxes, bankruptcy, collections, and more. If you have to make a case with the IRS or appeal your tax bill, having representation helps.

Offer tax advice

Tax attorneys also use their knowledge of tax codes, accounting, and contract law to help negotiate positive outcomes for their clients. They help legally minimize tax bills by helping clients time transactions, use deductions correctly, plan for major life events, or structure income in a specific way.

Tax attorneys can also offer advice related to retirement planning, capital gains taxes, inheritance taxes, gift taxes, and more. If you are someone who needs tax advice related to foreign investments, international taxes, or cross-border tax issues, specialized tax lawyers can help with that as well.

Tax attorneys also create or help you accurately fill out important legal documents, whether you need to start a business, complete a real estate transaction, or make an estate plan. Common documents tax attorneys prepare include business operating agreements, shareholder agreements, trusts, tax disclosure forms, and more.

Attorneys can also help you draft letters, such as responses to an IRS notice, in an official and confident tone. That can help reduce the stress people undoubtedly feel when they’re not sure how to respond to the IRS.

Research

Part of an attorney’s work is to stay up to date on tax laws and tax changes. Depending on your tax issue, they’re responsible for researching past cases as well as any recent updates to the law that may affect you. The IRS frequently issues new rules, and pending legislation can significantly impact specific tax issues. 

Ultimately, it’s a tax attorney’s job to stay up to date on real-time changes that may impact their clients.

Do you need a tax attorney?

Not everyone will need a tax attorney. Some people will be able to research and fill out forms on their own. Others might get the advice they need from an accountant. However, there are a few scenarios where you should consider hiring a tax attorney:

  • If you’re in trouble with the IRS and need representation
  • Have a large tax debt personally or through your business
  • If you own a business and need advice on corporate restructuring
  • If you’re starting a business and want to reduce long-term tax risks
  • Creating an estate plan if you have significant income and assets
  • If you have complex international investments or income
  • If you want to ensure you’re compliant during a real estate transaction
  • If you’re dealing with civil or even criminal charges related to taxes
  • If a tax issue is giving you extreme anxiety, and you want a professional to help support you

Here are a few situations where you likely don’t need the support of a tax attorney:

  • Filing simple personal taxes
  • Correcting minor tax filing errors
  • If you have W-2 income and no complex assets or investments.

In the cases listed above, an accountant can likely assist with filing your taxes.

How to hire a tax attorney

If you know you need to hire a tax attorney, first research local tax attorneys in the area, get word-of-mouth recommendations, read reviews, and arrange to meet with a few to see if they can help solve your issue. Before hiring an attorney, make sure to verify their bar membership and confirm they specialize in the type of tax law you need.

Tax attorneys may charge by the hour or with a flat fee. Tax attorneys typically charge between $200 and $400 per hour, although the fee may vary depending on where you live. If you’re having trouble deciding between attorneys, you can also ask for examples of past client outcomes.

It’s also helpful to ask if they require payment upfront in the form of a retainer or if you’ll be billed monthly. Some attorneys also charge a fee at the end of a case. Getting clarity on payments and the typical timeline for your issue can help eliminate frustration later.

Where to find tax help

If you still need help with your taxes, but you’re not sure you can afford a tax attorney, you still have options. Here are some examples of places you can go to get more affordable tax advice:

  • University legal clinics
  • Low-income state clinics 
  • Pro-bono lawyers
  • State bar associations

There are also specialized tax relief companies that help people and businesses with tax issues. Some, like Anthem Tax Services, offer a 100% money-back guarantee if they aren’t able to help you with your tax problem.

There is also an IRS directory you can use to find accountants, attorneys, and enrolled agents in your area who may be able to help you.

Article sources

At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.

About our contributors

  • Catherine Collins
    Written by Catherine Collins

    Catherine Collins is a personal finance writer and author with more than 10 years of experience writing for top personal finance publications. As a mother to boy/girl twins, she is passionate about helping women and children learn about money and entrepreneurship. Cat is also the co-host of the Five Year You podcast.

  • Amanda Hankel
    Edited by Amanda Hankel

    Amanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.