One frequently asked question on the internet about tax attorneys is “how much does an IRS lawyer cost?” Of course, we can’t hire a lawyer that works for the IRS, but the intent behind the question is clear; how much does it cost to hire an attorney to represent you against the IRS?
Flat Fee vs. Hourly Rate
The answer to “how much does an IRS lawyer cost” will depend on whether the attorney is charging a flat fee or billing by the hour. In brief, tax attorneys may charge a flat fee for specific services. For instance, a local tax attorney may charge a flat fee of $5,000 to secure an installment agreement with the IRS. In contrast, attorneys charge by the hour when litigation is involved or the total amount of work required to complete the task is difficult to estimate. For instance, a Sacramento tax law firm may charge an hourly rate of $350 to represent a client in an IRS audit.
What’s The Typical Flat Fee
There is no one standard flat fee. Rather, flat fees vary by attorney and service and range from a little over a thousand dollars to tens of thousands for business cases. With that said, to give you an idea of what a local tax attorney may charge for routine tasks, the Law Office of Jin Kim generally charges $1,800 for a tax account review, $3,500 for an individual’s installment agreement, and $8,000 for an offer in comprise with debt exceeding $50,000.
Hourly Rates
Tax attorneys generally charge by the hour for litigation, audit defense, and whenever the total amount of work is difficult to estimate. Like flat fees, hourly rates vary by the attorney. Low-cost tax attorneys may charge in the low $200’s by the hour, midrange tax attorneys in the mid $300’s, and experienced or transactional tax attorneys above $400. In the upper echelon where partners in prestigious law firms are concerned, hourly rates can exceed $1,000 per hour – but those are outliers for the typical client.
As of November 2021, The Law Office of Jin Kim charges $350 per hour. However, most tax resolution cases are accepted on a flat fee basis rather than an hourly rate. By offering a flat fee in lieu of an hourly rate, clients enjoy more certainty in the total cost of hiring a tax attorney.
Learn more about IRS and California tax resolution on The California Tax Blog by Jin Kim. The Blog features articles on offers in compromise, audit defense, and installment agreements. To learn more about getting out of tax debt call the Law Office of Jin Kim at (916) 299-9913 for a free consultation.
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