U.S. Tax laws and regulations are the most complicated ones in the world. As a result, many individuals and businesses find it difficult to file their tax returns without the help of professional tax lawyers.
According to a study conducted by the National Society of Accountants (NSA), for members who claim they can afford an attorney’s fee – 62% said they could not afford to pay more than $1,000 in legal fees for tax preparation.
Above mentioned survey results are in line with real-world facts about the price of a tax lawyer. It is highly recommended that you do your research before deciding who will prepare your U.S. income tax return. The average charge nationwide for tax preparation is $273, according to a study conducted by the research firm Market Data Retrieval.
So how much does a tax lawyer cost?
The price of professional U.S. income tax return preparation varies depending on the following factors:
1) Type of service – most professionals charge for their services per return (per client) and hour.
2) The number of forms required to prepare a return can be pretty large, so you must ask the tax professional whether he will charge for additional forms or not.
3) Type of client – individuals, small business owners, and corporations have different requirements when they need help with their income tax preparation. That’s why professional tax attorneys charge differently for different types of clients.
4) Experience – the more experience the tax lawyer has, the higher their chances of finding additional deductions that would cut your taxable income and reduce your taxes.
5) Location of office is also an important factor when choosing a U.S. tax lawyer. For example, if you live in New York, you should list tax lawyers with whom you want to work on your return.
It is important to understand that U.S. Tax Laws are always changing, and only a professional tax attorney will be able to help you with all changes and advise on how it can affect your return.
So, what price range should you expect for U.S. income tax preparation?
According to Market Data Retrieval, the average nationwide charge for filing a federal income tax return is $273. For small business owners and corporations, the average charge is $1,060.
But keep in mind that there are high-end tax lawyers who will do business for over $100 an hour, but you need to ask yourself if it is worth spending that much money for a few hours of work, or you can look for a more affordable offer.
Only experience and quality can justify a higher price.
Here is the list of average tax lawyer fees by city:
1) Atlanta – $279
2) Boston – $283
3) Chicago – $278
4) Dallas – $291
5) Denver – $323
6) Detroit – $282
7) Houston – $297
8) Los Angeles – $283
9) Miami – $267
10) Minneapolis-St. Paul – $269
11) New Orleans – $285
12) New York City – $289
13) Orange County, Calif. -$292
14) Philadelphia -$281
15) Phoenix, Ariz. -$326
16) Portland, Ore. – $278
17) Rochester, N.Y. -$282
18) San Diego – $288
19) San Francisco / Oakland/San Jose – $284
20) Seattle-Tacoma – $285
21) Washington, D.C. – $274
22) West Palm Beach, Fla. -$282
23) Pittsburgh – $275
24) Portland, Maine – $279
25) Providence, R.I./ New Bedford, Mass. -$280
26) Harrisburg-Lancaster-York Pa.-N.C. – $278
27) Cincinnati, Ohio -$281
28) Cleveland-Akron-Elyria, Ohio -$275
29) Milwaukee, Wisc. -$274
30) Jacksonville, Fla. -$287
Do tax attorneys help?
The answer is – it depends. For some people who are up to date with U.S. tax laws, find all deductions on their own, and prepare the return themselves, it may be easier to pay for tax preparation services. But if you feel lost in U.S. Tax Laws or so many complicated forms that most people would be scared to fill them out on their own, it is better to find a professional U.S. tax attorney and let them do all the work for you.
What can a tax attorney do for me?
A tax attorney is not obligated to provide you with any specific advice. Thus you should get all the details of your situation before hiring a professional. It would help if you found out whether or not there are any audits planned for your company, what papers will be needed and how much time you have to complete them. Being well informed about your options can save you a lot of time and effort.
In general, a tax attorney can help with: A complete documentation of your business operations; Preparation of your financial statements for the government; Providing information on all deductions that may apply to your situation; Helping you with any legal issues that may arise; And much more.
Do I have to pay a tax attorney all the money up-front?
No, it is not necessary to pay your income taxes before getting a government refund. The same rule applies to a U.S. tax lawyer – it is not necessary to pay them all the money up-front. It is more convenient for you to pay on a per-hour basis. In certain situations, a flat fee may be negotiated between you and your tax attorney – everything depends on your particular situation.
Remember that a professional U.S. income tax return preparation can save you time and money while protecting your financial interests.