Representation Before the Internal Revenue Service & State

how-much-does-it-cost-to-hire-a-tax-attorney-genesis-tax-consultants.jpg — cost of representation before the irs & state

Types of irs represenation Fees:

Licensed tax professionals generally charge either an hourly rate or a flat fee for their services.

Hourly Rate: The majority of power of attorney's charge by the hour. Every power of 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. We charge $150, a very fair price.

Flat Fees: The other options is a“flat fee,” which is a one-time charge regardless of how many hours the representative spends on your case. Flat fees are generally only used on simple or routine matters.

Which one is better? There are benefits and drawbacks to both of these fee types. An hourly rate is attractive because you don’t run the risk of overpaying if the attorney is able to resolve your case quickly or with very little work. On the other hand, you bear the risk of higher legal fees if the opposite occurs and your case takes more time to resolve than originally expected. This is one reason why most consumers prefer a flat fee arrangement, which allows them to lock in the cost of hiring an representative.

At the end of the day, you might not have much choice. Generally, representatives charge by the hour unless the case is very routine or simple. Feel free to request a flat fee, but the representative might not be willing to take the risk of having to perform extra work if something unexpected happens in your case.