The cost of a tax attorney can vary widely depending on a variety of factors, including the complexity of one’s case, the amount of tax debt owed, and whether there are any unfiled tax returns that need to be prepared.

For example, here at Choice Tax Relief, our attorney representation fees for cases taken on in the past month have ranged from $750 to $40,000.

Unfortunately, that huge range isn’t very helpful when it comes to helping you determine how much a tax attorney may cost you to take on your case, so in this article, we will be spilling the beans on exactly what we charged for a variety of client matters this month.

Choice Tax Relief is dedicated to fair pricing and transparent marketing – we want you to know what works for you without any fee-related surprises.

Instead of giving a number range, we’re sharing with you real clients, the details of these  to give you a better idea of price points.

In this article, we break down some sample client scenarios, ranging in severity, to best inform you of what to expect as you establish a budget for your tax attorney representation needs.

In the next section, we give you an in-depth look at what our tax attorney representation team was able to do — and charge — for clients for a variety of IRS tax collections issues with fees ranging from $750 to $40,000.

And after that, we’ve provided a table of other cases, noting each client’s profile, location, and solutions alongside how much they paid as a reference guide for you

Real World Examples With Attorney Fees $750 – $40,000

Here’s an in-depth look at three cases with fees ranging between $750 and $40,000.

Example #1: A $750 Case

A gentleman in New Hampshire reached out to us because he had just received a Notice CP90 from the IRS. This notice informed him that the IRS was threatening to seize your assets over his $76,152.69 in back taxes.

Our attorneys jumped at the opportunity to help him out, immediately working to negotiate a collection hold on his debt.

During the collection hold, his debt expired and dropped off due to the IRS’s collection statute of limitations, meaning that he didn’t owe any more — he essentially saved the full balance of $76,152.69.

Example #2: A $6,600 Case

In North Carolina, a working professional found themselves $125,251.05 in tax debt for 2021. The IRS had been penalizing them relentlessly, and they needed a way out.

In a panic, he reached out to us, and we offered a solution for $6,600.

We looked into whether we could make an argument to the IRS that our client should not be able for all the penalties that the IRS had assessed on his 2021 balance.

No luck there.

So we expanded our search to other tax years — and careful research revealed that $34,854.19 of penalties and interest could be abated for tax year 2018.

Since he’d already made a payment for 2018, and the IRS didn’t issue refunds, we argued that it could be a credit against his debt.

Despite the pushback from the IRS, we didn’t stop pressing to get his money back. Eventually, the IRS agreed, and we won our case.

We ultimately finished the case with his debt being significantly reduced. Instead of $125,200, he only owed $83,000. With a little more room to breathe, our client was able to pick himself back up and continue pressing on with his life.

Example #3: A $40,000 Case

An Arizona real estate investor found himself in over a million and a half dollars in debt. Assigned a revenue officer, all the signs pointed to bankruptcy and financial ruin. A revenue officer is only assigned to the worst cases, with only one job.

Collect all the money owed as soon as possible.

This revenue officer sent this man a final notice of intent to levy – that is, to seize – his assets if he didn’t pay $1,496,839.73 in full on the day he received the notice. He was in danger of losing everything and needed an effective solution immediately.

Our first order of business, then, was to prevent this revenue officer from mercilessly levying our client to the tune of over a million dollars. All of his assets were being threatened, and he was in danger of losing everything.

With nowhere left to turn, he reached out to Choice Tax Relief. After reviewing his case, we agreed to take him on.

We were able to provide him with a case manager as well as a tax attorney, and concluded that his net worth was locked up in equity. His real estate was in apartments, but he didn’t make income qualifying for a 1099 or W-2 form.

Step #1: Protect the Client From Levy Action

First, we had to appeal the levy against our client. He still needed ways to make money, and the levy greatly hindered him, especially as an individual in the real estate world. To make this happen, we requested a hearing for our client on the basis of the levy causing severe financial hardship.

Step #2: Halt the Lien Threats

We held multiple meetings, negotiating, and eventually, the IRS agreed and pulled back on the lien. It took about two months of hard work, but eventually we were able to come to an agreement.

Step #3: Negotiate a Payment Plan

Over the next eight months, we kept in constant contact with our client and his power of attorney (POA) to create a proposal for the IRS.

Our original proposal was a payment plan that had our client paying $5,500 a month. The IRS countered with a higher monthly fee.

His revenue officer was gracious, though, accepting a payment plan of $15,500 with an increase to $17,000. By that time, though, the rest of his debt dropped off.

Before and After

Overall, our client only paid about $200,000.

We were able to do all of that for $40,000.

Before he came to us, he had about $1.5 in debt. As we worked on his case, it grew to $1.6 million.

However, we were able to stop the levy against him through careful negotiations, transitioning seamlessly into halting the lien threats. Lastly, we negotiated a payment plan with the IRS to start attacking his massive debt.

With our strategic payment plan, he paid about $200,000 in total, freeing him from his massive burden.

Choice Tax Relief strives for actual results and works tirelessly to best equip clients for each of their unique situations.

More Examples

Obviously, we’ve had more than three clients in the last month. Here’s a table of ten of our representative clients to give you a better idea of our prices.

Tax Attorney Cost FAQs

You’ve seen how we handle our cases, but probably still have more questions such as the ones below.

Flat Fee vs. Hourly Rate

Flat fees are completely transparent, giving the client one bill for their entire service. It incentivizes the attorney to be efficient and effective, completing the job neatly and without hassle.

Hourly billing is a little less clear. Unless there’s a strict end date to the project, the possibility of it being stretched out for more than it needs to exponentially increases. The bills pile up, potentially leaving you worse off than when you started. While it can be less expensive in the short run, it’s not a favorable outcome in the long run.

Do I Need a Local Tax Attorney?

The short answer? No.

The long answer? Still no. Even though we’re a California-based tax relief company, we’re still able to represent people all over the country. You don’t necessarily need to be in the same state as your tax attorney.

Tax Attorney vs. CPA vs. EA

There are three different directions you could go for your tax relief needs. Certified Public Accountants (CPAs) or Enrolled Agents (EAs) are just as qualified as tax attorneys.

CPAs and EAs are qualified to deal with all the same issues as a tax attorney, except for tax crimes and representing you in the Tax Court. Unfortunately, the more specialized and complex the issue is, the greater the need for a tax attorney is.

At Choice Tax Relief, you don’t have to choose. All three are staffed and are ready to help you with your tax needs.

Could I Do It Myself?

It’s very possible you could represent yourself in a simple tax situation. Some considerations to have include:

• How much do you owe?
• Are the tax charges criminal?
• Can I afford to pay this amount over time?
• Is the IRS garnishing my wages?
• Is this individual income tax or business tax?
• Is there a lien or levy on my assets?
• Do I need to go to tax court?

Each of these questions adds a layer of complexity to a case. The more complex, the more likely a tax attorney is a safer choice.

Final Thoughts

There is no such thing as a “default” fee for a tax attorney. It’s almost impossible to give a number and guarantee it’ll work. Everyone’s situation is different, and their cases vary in severity.

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