Normally, tax attorney fees range from $200-$500 per hour. Often, you will pay a retainer, which is based on the man hours that they believe your case will take, before the engagement begins. If your case goes beyond the estimated hours, you will then be billed for the additional hours. For simple cases like an "offer in compromise," you will find that the retainer will be enough to cover everything. If you have a complex engagement like going on trial for a tax dispute, anticipate that you will go over your prepayment as early as now.
Flat fee
If you do not want to be surprised by hefty tax lawyer fees, you can also consider talking to your attorney about flat fees. While you may have time pay much more than usual, you will at least be able to control your legal expenses. However, keep in mind that this can, in fact, discourage your tax attorney from working on your case, because there is no extra hourly incentive compared to their other clients. If there is an unforeseen complication with your case, you may want to make a performance incentive for your lawyer so that you can ensure that they will work as hard as they can for you.
Contingency fee
Aside from flat rates and hourly fees, law firms allow for another kind of billing arrangement called the contingency fee. If you have a case where the ruling will be obviously in your favor, then law firms will probably agree to this billing arrangement. Some lawyers are willing to take cases that are results-based, because it can actually earn them more money when they win them. You may also choose to go for a blended approach where the lawyer will earn for a lower hourly rate, but will stand to earn more when he or she gets a percentage of the amount of tax recovery. You should know, however, that you will still have to pay for filing fees, phone charges, and photocopying expenses.
There are many ways that you can negotiate with the lawyer when it comes to his or her tax evasion lawyer. If your situation is so dire that you cannot afford even a contingency fee, you may also consider looking for hiring the services of a public defendant. Remember that whether you choose to go for contingency fee, hourly fee, or a flat rate, facing the IRS alone is not an option.
