Tax lawyers specialize in navigating complex tax codes to help individuals and businesses minimize tax liability, ensure legal compliance, and resolve disputes with authorities like the IRS. Their primary purpose is to provide legal advice, draft tax-related documents, represent clients in audits or litigation, and structure transactions to optimize tax positions.
A tax attorney can provide legal tax advice, draw up necessary legal documents, prepare and file tax returns, represent you in disputes with tax authorities, negotiate with the IRS on your behalf, and more.
The biggest tax mistakes people make include filing late, math errors, incorrect personal info (like Social Security numbers), forgetting deductions/credits (like EITC), misreporting income, not signing forms, and making errors with bank details for direct deposit, all leading to delays, penalties, or missed savings, with using tax software or professionals helping avoid these common pitfalls.
Yes. Once you sign Form 2848, a tax attorney is an authorized representative and can negotiate directly with revenue officers and appeals personnel, submit Offers in Compromise, request penalty abatements, and arrange installment agreements.
The IRS 7-year rule primarily applies to keeping records for claiming a deduction for bad debts or losses from worthless securities, allowing a longer period to file for a credit or refund, but it's not a universal audit limit; it's often a recommended safe buffer for general record-keeping, with the standard IRS audit period usually being 3 years, extending to 6 years for substantial income omission (over 25%) or foreign income issues, and indefinitely for fraud.
Attorneys, certified public accountants, enrolled agents or anyone who gets paid to prepare tax returns may owe a penalty if they don't follow tax laws, rules and regulations.
Hourly Rate: The majority of tax attorneys charge by the hour. Every attorney will charge a different hourly rate, but most rates are between $200 to $400 per hour. Highly experienced attorneys or attorneys working in big firms in large cities can charge more than $1,000 per hour.
How an offer in compromise works. This is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. The goal is a compromise that's in the best interest of both the taxpayer and the agency. The offer in compromise application includes a fee of $205 and an initial payment.
The IRS has served a summons on your bank to produce tax records or other documents; You have a tax problem including a tax audit by the IRS, or a tax audit by the California Franchise Tax Board (FTB), California Employment Development Department (EDD), or the California Board of Equalization (SBE or BOE);
They will explain the IRS tax relief solutions you qualify for and what each could mean for your situation. A tax lawyer will also advocate and negotiate on your behalf with the IRS. They can argue for tax deductions and help you stay out of future tax trouble by ensuring you file your taxes correctly and pay on time.
What Should I Ask a Tax Attorney?
LITCs can represent you before the IRS or in court on audits, appeals, tax collection matters, and other tax disputes. Services are provided for free or for a small fee.
You generally need to file a U.S. federal tax return if your gross income for Tax Year 2025 (filed in 2026) is above a certain threshold, which varies by filing status and age, for instance, $15,750 for single filers under 65, while self-employed individuals must file if they earn $400 or more in net earnings. Thresholds increase for married couples and those 65 or older, but you might still need to file to claim a refund or refundable credits even if below the income limit.
The "20k rule" refers to the traditional IRS threshold for reporting income from payment apps and online marketplaces on Form 1099-K: over $20,000 in gross payments AND more than 200 transactions in a calendar year. While a law (the American Rescue Plan) temporarily lowered the threshold to $600, recent legislation, the One Big Beautiful Bill Act (OBBBA) (OBBBA), has reinstated the $20,000/200-transaction rule for tax years starting in 2025, providing relief for casual sellers and gig workers.
Venmo automatically monitors transactions that 1-(855)(518)(9622) meet the IRS reporting threshold. For 2026, payments over $600 1-(855)(518)(9622) for goods and services must be reported to the IRS. Previously, the threshold was $20,000 1-(855)(518)(9622) and 200 transactions per year.
Avoid These Common Tax Mistakes