Are Tax Attorneys Worth It?
You probably never thought you’d find yourself searching the internet about tax attorneys (like Choice Tax Relief’s own tax attorneys for hire, Greg Ibbetson and Andrea Coins) and whether or not they’re worth it — but here you are.
And you’re smart for doing so.
Although attorneys of all stripes get a bad rap, intelligent and sophisticated people at least consider hiring an attorney when faced with a legal situation.
And all of the following are serious legal situations regarding your taxes:
- Being pursued by the IRS for back taxes
- Being pursued by the IRS for unfiled tax returns
- Being audited by the IRS
- Having a notice of federal tax lien filed against you
- Having your passport
Now, if most sophisticated people were honest, they’d probably say that if they could get unlimited legal advice and representation for free, of course they would hire an attorney whenever faced with a legal predicament and especially when faced with a tax-related legal predicament.
But since attorneys — especially tax attorneys — don’t work for free, the first factor to consider when determining whether a tax attorney is worth hiring for your legal situation is the cost of the attorney.
So let’s start off with discussing how much tax attorneys cost (in general).
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How Much Do Tax Attorneys Cost?
Tax attorneys generally charge more than CPAs or enrolled agents, but their fees vary widely depending on the complexity of your case and where you live.
Many tax attorneys bill by the hour, with rates commonly ranging from $200 to $500 per hour, though in large metro areas or for highly specialized work, rates can climb higher.
For specific services such as IRS audit representation or the preparation and submission of an offer in compromise, a tax attorney may charge a flat fee, perhaps ranging from $3,000 to $7,500 depending on the scope and complexity of the work.
Complex litigation or criminal tax defense, on the other hand, can easily cost tens of thousands of dollars.
To engage our tax attorneys at Choice Tax Relief, we can’t honestly say there’s a “one-size-fits-all” fee, but we routinely charge $1,500 or so for relatively straightforward installment agreement negotiations to well over $50,000 for comprehensive resolutions for large businesses that have issues with multiple taxing jurisdictions.
Be sure to check out our article “How Much Does a Tax Attorneys Cost?” for a closer look at tax attorneys’ fees.
When a Tax Attorney Is Worth It
There are times when hiring a tax attorney isn’t just a smart move — it’s essential.
Here are the most common situations where the value far outweighs the cost.
1. When the IRS Is Taking Enforcement Action
If you’re facing a lien on your home, a levy on your bank account, or wage garnishment, the IRS has already shifted into collection mode.
A tax attorney can step in quickly to stop or slow down these actions, negotiate with the IRS, and protect your assets.
2. When You’re Being Audited in Person
If the IRS wants to sit down with you — whether in your home, your business, or at one of their offices — you need representation.
A tax attorney can make sure you don’t accidentally say something damaging, and they can push back if the IRS oversteps.
3. When Fraud or Criminal Exposure Is Possible
If you’ve been contacted by IRS Criminal Investigation, received a subpoena, or know that your returns include willful errors, you cannot afford to go it alone.
Only an attorney can provide the legal defense and attorney-client privilege you need in a criminal matter.
4. When You Owe a Large Balance
If your tax debt is significant — say $25,000 or more — you have more to lose if things go badly.
A tax attorney can pursue advanced strategies like Offers in Compromise, negotiate for penalty abatement, or challenge IRS assessments to reduce your balance.
5. When You Need to Go to Appeals or Tax Court
Once your case leaves the IRS’s front-line staff and moves into appeals or litigation, a tax attorney is the professional with the training and authority to argue your case.
Without one, you’re at a steep disadvantage.
In all of these cases, the cost of a tax attorney is usually far less than the cost of going without one.
When a Tax Attorney Might Not Be Worth It
That said, there are many tax problems where a tax attorney may not be the best — or most cost-effective — option.
In these cases, another professional, such as a CPA or enrolled agent, may be a better fit.
1. Simple Unfiled Returns
If you just need to get caught up on a few years of unfiled tax returns and there’s no fraud or criminal element involved, a CPA or enrolled agent can prepare your returns at a fraction of the cost.
2. Straightforward Installment Agreements
If you owe a relatively modest balance and qualify for a streamlined installment agreement with the IRS, you may be able to set it up on your own or with help from a less expensive tax professional.
3. Penalty Relief for Small Balances
If your main concern is say IRS one-time forgiveness and your balance is otherwise small, the IRS has administrative programs that don’t necessarily require an attorney to access.
4. Routine Tax Preparation
For ongoing tax compliance — preparing annual returns, bookkeeping, or basic planning — a CPA or tax preparer is usually sufficient.
In short, if your case doesn’t involve legal strategy, large amounts of money, or the risk of criminal investigation, you may not need to pay attorney-level fees.
The Bottom Line
A tax attorney is not always the first person you should call when you run into trouble with the IRS, but in certain situations, they’re the only one who can truly protect you.
Think of it like insurance: If the risk is high, the investment is worth it; if the risk is low, a less costly professional may be able to meet your needs.
At Choice Tax Relief, we help clients navigate this very question every day.
Sometimes that means bringing in one of our tax attorneys; other times, it means pairing you with a CPA or enrolled agent who can resolve your issue more affordably.
The important thing is that you don’t wait.
The longer you ignore IRS notices, the fewer options you’ll have.
If you’re unsure whether a tax attorney is right for your situation, we invite you to reach out to us for a free tax relief consultation.
We’ll walk you through your options, explain potential costs, and help you make a decision that protects both your finances and your peace of mind.
Author:
Logan Allec, CPA, Founder and Owner
Logan Allec has been serving taxpayers as a CPA for over 14 years. After leaving his role at a "Big 4" firm, he started Choice Tax Relief to help everyday Americans who have found themselves behind on their taxes. He also educates thousands of people daily about tax relief on his YouTube channel. In addition to his CPA license, Logan also has a Master's Degree in Taxation from the University of Southern California (USC). He lives with his wife and children in the Los Angeles area. Learn more about Logan here.
