Tax Attorney Fees – Are They Value For Money?
When dealing with complex tax issues related to debt or overdue taxes, paying the Tax Attorney Fees of a professional lawyer can be daunting. The last thing anyone wants to do when facing debt or an IRS levy is shell out more money, but hiring a professional is a good investment and will most likely save you money and worry in the long run. It is difficult to find out what the average professional charges, because factors such as experience and education have significant effects on their rates. Often times the more experiences professionals with a solid client base are significantly more expensive than those who are just beginning their careers.
The fees can range from a few hundred dollars a month to thousands depending on the specifications of the job they are hired to do and the amount of effort, work and research it requires. Even just having a consultation with a professional tax attorney can lead to Tax Attorney Fees of $75 to $300 dollars. During the consultation you can discuss costs for the future and hourly rates. Often times you will be charged a retainer of about $400 that will not be refunded.
Some clients opt to pay their Fees on an hourly basis, but due to the amount of time that lawyers often spend preparing and researching, the resulting fee can end up costing the client anywhere from $30,000 to $75,000 in fees and charges. The hourly fee is also based on the professional’s experience in the field and reputation amongst other lawyers. Clients can negotiate with tax attorneys to come to an agreement on a rate that will both benefit the client and the attorney. If a client decides to forgo the hourly fee option due to the uncertainty of the final payment, he can opt to pay a flat rate. A flat rate Tax Attorney payment is also referred to as a non-refundable retainer. This fee is agreed upon in the beginning and the client makes a single payment without having to worry about payments in the future.
Another type of charge from your attorney is called the contingency fee. This is when the attorney decides in advance to charge the client a fixed percentage of the tax savings. Usually the contingency fee is about 30% of the savings and when the attorney wins a case, the IRS has to pay the fees, rather than the client.