How to Hire a Tax Attorney
1. Match the tax specialty, industry experience, and jurisdictional depth
Tax law is highly specialized, identify the area you need (federal income tax, state and local tax (SALT), international tax and cross‑border issues, estate and gift tax, tax controversy and IRS audits, tax structuring for M&A, partnership and LLC tax, employment and payroll tax, or tax‑exempt/charitable organization work). Ask for examples of recent matters in the same area and of similar size: closing memo for an acquisition showing purchase‑price allocation and tax structuring, state nexus audits defended and settled, international transfer‑pricing documentation, estate‑tax planning for comparable net worth, or IRS audit wins and negotiated settlements. Confirm the attorney’s depth in relevant jurisdictions, state tax rules vary widely and international tax depends on treaties and local regimes, so they can foresee filing obligations, audit exposure, and likely interpretations by the IRS or state tax authorities.
2. Require documented technical work product, peer‑reviewed strategy, and access to tax specialists
Ask for redacted work samples that show technical ability: closing tax opinions, private‑letter‑request drafts (where applicable), competency in issuing tax analysis memos that cite code, regulations, rulings, and key cases, and examples of negotiated closing agreements or competent‑authority outcomes in cross‑border matters. Verify they routinely use and coordinate with necessary specialists, CPA/tax‑accounting teams for basis and allocation modeling, transfer‑pricing economists, international‑tax counsel in foreign jurisdictions, and estate‑valuation appraisers, and that they can assemble a team for complex matters. For controversy work, require examples of successful IRS appeals, collection‑alternative arrangements (Installment Agreements, Offers in Compromise), or litigation victories in Tax Court, federal district courts, or appellate courts, plus sample audit defense playbooks showing document preservation, voluntary disclosure strategies, and penalty‑mitigation approaches.
3. Get a written engagement with phased fees, deliverables, and enforcement/filing planning
Obtain a written engagement letter that defines the scope (planning, compliance filings, audit defense, litigation, or valuation work), names the team, and breaks work into phases with budgets: diagnostic and exposure analysis, implementation (drafting returns, opinions, or filings), audit/defense phase, and appeals or litigation. Negotiate fee terms appropriate to the task, fixed fees for discrete deliverables (opinion letters, return preparation, closing‑package drafting), capped or phased hourly budgets for audits and litigation, and blended or success‑fee arrangements for large‑value recoveries, plus explicit allocation of third‑party costs (appraisers, economists, foreign counsel, bond costs for tax‑court stays). Insist on specific deliverables and timelines: a written tax‑risk memo with quantified exposure, a compliance calendar for critical filing deadlines, a preservation protocol for documents and e‑records, and a clear enforcement plan (steps for IRS collection defense, tax‑court petition timelines, injunctions or bond strategies to stay collection, and procedures for multinational treaty relief). These operational commitments let you evaluate cost versus benefit and ensure legal work aligns with business and timing constraints.
