Paying taxes can be complicated. Whether you are paying your individual taxes, dealing with taxes on your estate, or paying taxes for your business, things can get complicated quickly. If you do not pay all of your taxes on time, it can also mean hearing from the Internal Revenue Service, or IRS. One way to deal with any issues that you have regarding taxes is by hiring a tax attorney. A tax attorney can help you navigate any legal situation that you find yourself in regarding taxes. Here are three things to know when hiring a tax attorney.
They Can Help With the IRS
The first thing that you should know when it comes to hiring a tax attorney is that they can help you with your dealings with the IRS. A few situations where an attorney will be a necessity include being audited by the IRS, when the IRS is pursuing criminal charges against you or your company, and when you get a CP notice which informs you of a balance due. A tax attorney will be able to communicate on your behalf and help you settle any legal issues that have arisen.
They Can Help With Other Situations
There are also a variety of other situations in which you may find hiring a tax attorney is the best option. If you are planning your estate, a tax attorney can help devise strategies that will prevent a large portion of your estate going to taxes. If you are starting a business, you will also want to consider hiring a tax attorney to help you determine what the best tax structure for your business will be. If you are filing for bankruptcy, a tax attorney can also help determine which taxes can be discharged.
You Should Be Aware of the Cost
If you are in a situation in which a tax attorney can help you, it's important to consider how much their services will cost. The total cost will vary depending on your situation and the rates of your attorney. On average most tax attorneys bill between $200 and $400 per hour. If you have a relatively simple case, you may pay between $700 and $1,500 in total to your attorney. Slightly more complex cases typically cost between $2,000 and $4,000; while legal issues that involve lengthy court cases will typically mean attorney fees between $5,000 and $15,000.
When it comes to hiring a tax attorney, there are a few things to keep in mind. First, if you are having an issue with the IRS, a tax attorney can help. There are also a variety of other situations in which hiring a tax attorney is a good decision. Costs will vary but most tax attorneys bill between $200 and $400 per hour.