You should hire a tax attorney if you have an estate that is taxable, are making complex estate planning strategies, or if you are required to file an estate tax return. You should also hire a tax attorney if you are starting your own business and need legal counsel around the tax structure of your company. If you are engaged in international business, a tax attorney can help you with contracts, tax filing and other legal issues. You should also hire a tax attorney if you are under criminal investigation by the IRS, you are planning to bring a suit against the IRS, or you plan to seek an independent review of your case before the US Tax Court or the tax court in your country. A good tax attorney can help you file an appeal of a tax court decisions, communicate effectively with IRS officials, and help your business save money by taking advantage of tax credits.
You should also do an internet search of a referred attorney. Check if they have a website, or any online reviews of their services.
You can also contact your state bar association to see if there are any complaints or disciplinary action on file for the attorney.
Many tax attorneys also have a Master of Laws in taxation. This is a plus as it shows the attorney has a specialization in tax law. Some lawyers are also certified public accountants, which may come in useful for certain types of tax issues.
As well, a tax attorney who has worked for the IRS previously may have better insight into IRS management and processing.
Pay per service: In this type of fee arrangement, you pay your attorney for each service he completes on your behalf. If you need the tax attorney to help you file a complaint against the IRS, for example, he will charge you a set amount to file the complaint. The benefit of this arrangement is you get exactly what you pay for and only on an item by item basis, and there are no hidden fees. But you will need to vigilant to prevent being “provided” unwanted or unnecessary services, and charged the applicable fees. This arrangement can end up being time consuming, as you will need to keep track of every legal expense, and may put strain on your relationship with the attorney. Pay per hour: This fee arrangement is used by most tax attorneys. You are charged on an hourly basis for the attorney’s services. The going rate is between $200-$500 an hour. If you hire a lawyer who runs his own practice, you may get lower rates of between $100 to $200 an hour.
Always check that the attorney is being transparent and honest with you during the consultation. Don’t be afraid to talk dollars and cents with the attorney, especially the fee arrangement for the attorney’s services. If you are looking for an affordable rate, try to negotiate or discuss a lower rate with the attorney. The attorney should also let you know about your tax settlement options and his suggestions for moving forward with your case. This will show he is engaged in your tax case and can provide guidance on your case.
Check local law schools, many of which have free tax clinics. For example, Chapman Law School[8] X Research source and University of San Diego law school[9] X Research source provide free legal services. Legal Aid also has taxpayer clinics. If you have an interesting legal issue, you may find private law firms that will represent you. Look for local firms that offer pro bono clinics.
