What to look for in a tax lawyer
Here are three things to look out for.
A law degree. To practice law, an attorney must obtain a law license. You may find out if a tax attorney is licensed to practice law in your state by visiting the website of your state’s bar association.
Signs indicate a higher level of knowledge or specialization. For example, to obtain a legal license in most states, you must also complete law school. Some tax lawyers hold a master’s degree in taxation (an LL.M). Some tax attorneys also hold CPA credentials, indicating that they are certified, public accountants.
A tax identification number for a preparer (PTIN). Anyone who prepares tax returns for a fee must obtain a PTIN from the IRS. In addition, your tax return must be signed by the preparer, who must also supply a PTIN.
How much does a tax attorney charge?
Legal work isn’t cheap in general. According to a poll conducted by Martindale-Avvo, legal marketing and directories organization, tax attorneys charge an average of $295 to $390 per hour. However, the length of the attorney’s experience can shift the value lower or higher.
According to the firm’s research, 37% of those who utilize legal advice for taxes pay between $0 and $5,000, and another 14% spend between $5,000 and $100,000. A quarter of the work is done pro gratis or for free, and 4% is done on a contingency basis (where the attorney receives a portion of the damages if any are awarded).
How to Obtain Free Legal Aid
You might be able to get free or low-cost tax advice from a tax attorney in your area if you go to a low-income tax clinic, often known as a LITC. These clinics represent persons whose income falls below a set threshold and need to resolve tax issues with the IRS. For example, LITCs can defend you before the IRS and in court in audits, appeals, and tax collection disputes. LITCs can also assist people in responding to IRS letters and resolving account issues. The Taxpayer Advocate Service website will help you find a nearby clinic.