Tax attorney cost

[lscottpht]

Ok, so I've been talking with a tax attorney and going over all the numbers. My return is pretty complicated, and he is charging $1750. What I need to know, does this sound reasonable? He says I qualify for an "offer in compromise" or something like that. My expenses are more than what I make (no wonder I'm always broke lol!). I was expecting my tax bill to be around $20K, but it looks like I won't have to pay anything. Anyway, what I'm asking is if this sounds like a decent price or not.

[dixonduke]

You did see this thread right? HERE

Other than that I got nothing else to aid you in your question.

[DSL_PWR]

When dealing with tax attorneys you are literally at their mercy unless you can try to negotiate for future dealings, ie have him handle your returns from now on if that is something you want to do. Otherwise might want to call around and talk to others and see if you can find a better rate. I know that in dealing with my tax attorneys in the past from a purely business perspective that is a decent rate if your tax bill is only $20K.

Where is this firm located and how much yearly business do they do and what caps do they usually handle?

[lscottpht]

Originally Posted by DSL_PWR

When dealing with tax attorneys you are literally at their mercy unless you can try to negotiate for future dealings, ie have him handle your returns from now on if that is something you want to do. Otherwise might want to call around and talk to others and see if you can find a better rate. I know that in dealing with my tax attorneys in the past from a purely business perspective that is a decent rate if your tax bill is only $20K.

Where is this firm located and how much yearly business do they do and what caps do they usually handle?

Well, to be honest, they called me from some stupid internet thing I did. At first I told them, no, I didn't fill out their form (I didn't), but I do have taxes that I have to take care of. The guy is in California, and his parents were both full time photographers. So, we really hit it off. I really didn't know what all to ask. I know they will be setting me up quarterly, from here on out (was doing yearly). Normally, they won't be charging that much, but there is so much involved with this one. The normal rate for this was around $2950 or something like that, and they gave me a discount and are willing to have me pay the $1750 in payments (around $400 each time). So, I don't know what caps they usually handle. The name of the company is Tax Network USA.

[texkam]

Not sure if it's a decent price, but like photographers, tax attorneys make money based on their high level of expertise. Wonder why the pay scale is so different? Sigh... off the soap box.

Does he need any portrait work done?

[lscottpht]

Well, unfortunately, he's in Cali, so I can do an exchange of services. He really did seem to be great with numbers, I must say. I even found out that if I cut out 5 cigarettes a day, I will save $20 a month LOL!

[midlight21]

Attorneys cost money period. Some more than others and you're paying for experience and expertise. So the rate you were quoted is probably a good one but I'd still do some checking around to make sure.

[abril1127]

OK Don't flame me but I did my first year of my business taxes through Turbo Tax. You can do it for free and if you don't feel good about it, it didn't cost you anything but your time....but to actually e-file or print you have to pay $59.
Mine were fairly simple but It covered everything I had concerns about. Lets you state what assets you have, when you purchased them and what percentage of time you use them for business. For me it was perfect because some photog things I bought before I started the business. Plus next year it will have all my depreciating items already to go.
As for sales tax, Texas sends me a form quarterly and I fill it out, pretty cut and dry.

[CaptainTom]

Leslie
I would think that if you believed your tax liability was going to be 20K and they are going to save you that 20K legitimately then their price is reasonable.
Don't forget to get them to quote you to do the state taxes.......then you'll know if they are sharp ( there are no state taxes in Texas ).
Sales tax is a different issue since you are only collecting the states for the state.

[lscottpht]

Thanks, guys. I will also be talking to someone locally and getting a price, just to see. Yeah, Tom, he told me there was no state tax, but I said I know there is. I was actually talking about the sales tax, and I think he figured that out. At first he said I shouldn't have to pay sales tax, but I told him, yes, my services are taxable. He looked at something and said, yeah, you have something in Tx that makes you have to pay (not his words exactly, don't remember what he said). So, he's supposed to be doing that, as well. I did pay last quarter, but I did it online, and I don't think it charged me enough. So, I'm just needing to make sure I am paying the correct amount.

April, I think mine are too complicated for that, unfortunately.

[Digigeek]

Leslie,

You are better off finding a good local CPA who does tax work and hiring him/her to prepare your returns. The fee should be in the $500 to $1,000 range per year tops. I would limit your dealings with tax lawyers to matters requiring an attorney to represent you in dispute resolution with the IRS, such as collection suits and the like. A good CPA with experience dealing with the IRS can handle audits and other routine IRS matters for a lot less than an attorney.

I don't know what your situation is that led to hiring an attorney or that calls for a compromise with the IRS, but I can't imagine a situation that would require you to spend that much for return preparation.

I would find a good local CPA you can sit down with to go over your business and develop a relationship with. You'll benefit in the end.

This comes from an attorney.

[janikphoto]

My fees at H&R Block were getting to be around $750 a year, so I would assume a better quality CPA might be a grand, maybe $1250. However, nearly two grand seems like LA money, not Dallas money...

[DSL_PWR]

Originally Posted by lscottpht

Well, to be honest, they called me from some stupid internet thing I did. At first I told them, no, I didn't fill out their form (I didn't), but I do have taxes that I have to take care of. The guy is in California, and his parents were both full time photographers. So, we really hit it off. I really didn't know what all to ask. I know they will be setting me up quarterly, from here on out (was doing yearly). Normally, they won't be charging that much, but there is so much involved with this one. The normal rate for this was around $2950 or something like that, and they gave me a discount and are willing to have me pay the $1750 in payments (around $400 each time). So, I don't know what caps they usually handle. The name of the company is Tax Network USA.

Well if that is the case then you might not be in a bad situation there and might want to take his offer. I think that is about all you can get since his normal rate is almost double what he is charging you. Run with it before he changes his mind.

[island bound]

Originally Posted by Digigeek

Leslie,

You are better off finding a good local CPA who does tax work and hiring him/her to prepare your returns. The fee should be in the $500 to $1,000 range per year tops. I would limit your dealings with tax lawyers to matters requiring an attorney to represent you in dispute resolution with the IRS, such as collection suits and the like. A good CPA with experience dealing with the IRS can handle audits and other routine IRS matters for a lot less than an attorney.

I don't know what your situation is that led to hiring an attorney or that calls for a compromise with the IRS, but I can't imagine a situation that would require you to spend that much for return preparation.

I would find a good local CPA you can sit down with to go over your business and develop a relationship with. You'll benefit in the end.

This comes from an attorney.

If it sounds to good to be true....
Actually sounds a little fishy to me.
Don't have regrets.
Get a local CPA tax person.

[pavi]

I am a CPA. I don't do offer in compromise but there are many locals who do. These people usually have a working relationship with local agents. Texas CPAs are also very easy to check for complaints at the Texas State Board.