Sacramento Tax Lawyer

I help clients with back taxes resolve their debt with the Internal Revenue Service. To learn more about your tax relief options call my tax law firm at (916) 299-9913 for a free consultation.

Free Consultation & Payment Plan

If you owe back taxes I encourage you to call my office at (916) 299-9913 for a free consultation. In many cases, I offer flat fees and payment plans that make tax resolution affordable for businesses and individuals with tax debt.

How I Stop IRS Collections

In McCulloch v Maryland Chief Justice Thurgood Marshall wrote “the power to tax involves the power to destroy.” As many taxpayers find out too late, the IRS can destroy financial security in its quest to collect every dime of tax liability. The IRS will levy bank accounts, garnish wages, file a federal tax lien, offset tax refunds, and assess penalties until tax debt is repaid in full.

However, while the IRS has the power to destroy a taxpayer’s finances, that’s rare with an experienced tax attorney.

The IRS is interested in workable solutions to recover some portion of the tax owed. As your tax attorney, I can work with the IRS to create a tax resolution strategy that stops IRS collections and preserves your financial integrity.

How Much Does A Tax Attorney Cost?

The most common question people have when searching for a tax lawyer is “how much will a tax attorney cost?” In general, tax attorneys charge between $200 to $550 per hour. Some cases can be handled for a flat fee, but most involve hourly billing.

Regular individuals will usually pay less than businesses for the following reasons: (1) when the taxpayer is a business, it’s more likely that an IRS revenue officer is involved; (2) business tax cases belong to a different unit in the IRS than individual taxpayer cases; & (3) some tax resolution strategies for businesses, like an offer in compromise, can be more difficult as the IRS has a different analysis for businesses vs. individuals.

Naturally, experienced tax attorneys will cost more than inexperienced lawyers. Due to the expense of hiring a tax attorney, some ask whether they need to hire a tax attorney to deal with the IRS; after all, there are many non-attorney tax resolution businesses.

Do I Need A Tax Attorney?

Taxpayers facing IRS collections have 3 options: (1) hire a tax attorney, (2) hire a “tax resolution” business, or (3) try to deal with the IRS themselves. Clearly, not hiring anyone is the cheapest option, but often leads to greater tax liability over time as interest and penalties accrue. Likewise, loosely regulated “tax resolution” businesses put their clients on monthly payment plans that are designed to collect monthly fees. Unsurprisingly, large tax resolution businesses are very good at collecting fees and marketing – neither of which necessarily benefit clients.

People hire tax attorneys when their debt to the IRS or FTB is greater than they can easily pay.

Flat Fee

The Law Office of Jin Kim offers flat fees to make hiring a tax attorney more affordable. Flat fees involve payment for a specific service. For example, paying a flat rate for an offer in compromise.

Many people prefer to hire a tax attorney for a flat fee rather than pay a retainer with hourly billing. Flat fees have the benefit of being more transparent as clients understand exactly how much their case will cost. In contrast, hourly billing involves monthly invoices with unpredictable totals and replenishment of the retainer fee once depleted. As some unscrupulous attorneys have a reputation for over-billing clients, many individuals prefer to pay a flat fee for tax resolution.

Payment Plans

To make tax resolution more affordable, the Law Office of Jin Kim offers payment plans. After a down payment, the attorney will represent you before the IRS or FTB and work toward resolving your tax debt.

Offer in Compromise

An offer in compromise (OIC) is a popular tax resolution strategy, but it’s one of the most misunderstood forms of tax relief. In brief, an offer in compromise is the settlement of tax debt for less than the amount owed. However, a viable offer is not a random figure, but rather an amount that aligns with the client’s reasonable collection potential (ie. how much the IRS can collect from the client’s income and assets). Moreover, a basis must exist for an offer in compromise such as when there is doubt as to collectibility, doubt as to liability, or when an offer in compromise promotes effective tax administration, such as when collection would create an economic hardship as defined in Treas. Reg. § 301.6343-1(b)(4). As is evident from this partial list of criteria, offer in compromise applications can be complicated, technical, and have a better chance of success when submitted through experienced tax counsel.

Installment Agreements

Sometimes the amount owed to the IRS becomes so great that a one-time payoff is out of the question. In these cases, a tax attorney may be able to work out an installment agreement with the IRS to stop collections while the balance is repaid over time. However, interest and penalties will continue to accrue throughout the installment plan until the balance is paid in full. Nevertheless, installment agreements can be effective in cases of non-dischargeable tax debt, such as payroll and employment taxes, that are not eligible for offers in compromise, and if left unpaid, can lead to closure of the business.

Collection Defense

The majority of Jin Kim’s clients owe federal tax debt to the Internal Revenue Service. Moreover, these clients are in some stage of IRS collections, from a ‘notice of tax due’ letter to more advanced stages such as bank levy, wage garnishment, or a tax lien. Nevertheless, in many cases, IRS tax attorney Jin Kim can offer assistance right away by forcing the IRS to communicate through the Law Office of Jin Kim, not directly with the client. Next, an IRS defense attorney will create a tax resolution strategy that fits the client’s situation. That strategy may be as simple as securing currently non-collectible status with the IRS, to more complicated solutions such as an offer in compromise that settles the overall tax debt for less than the total amount owed.

Audit Defense

The Law Office of Jin Kim represents clients under IRS audit, CDTFA sales tax audit, and EDD payroll tax audit. Many of our audit defense clients are businesses that have a variety of tax violations, but chief among them are sales and payroll tax arrears that threaten the continued operation of the business. In all cases, our goal is to minimize tax liability with the tax agency and ensure that business operations continue. For that to happen, we work with clients and their accountants to facilitate ongoing tax compliance while our office engages with the tax agency.

Should You Hire A Tax Attorney?

If you’re facing IRS tax collection you’re probably wondering whether you need to hire a tax attorney. After all, there are tax attorneys, tax resolution companies, CPA’s, EA’s, and various tax settlement businesses. While non-attorneys such as Enrolled Agents, CPAs, and tax settlement businesses can offer tax resolution services, many clients later find themselves with poor results. Instead, consider hiring an experienced tax attorney who is governed by the Rules of Professional Conduct, professionally accountable to the State Bar, and whose confidential communications are protected by attorney-client privilege. By hiring a flat fee tax attorney you’ll communicate directly with an experienced attorney who understands your case and tax relief options.