If you chose in the past to forego the services of a tax attorney and now find yourself in trouble with the IRS, either because of back taxes, and audit, investment fraud, or anything else, now is the time to hire a tax attorney. And now means now. Don't wait another minute. Waiting too long to address the issues can result in liens, garnishment, fines, interest, and even prison time. Here are four things you need to know when pursuing the services of a tax attorney.



1. Generalist or Specialist. The attorneys you find in your area will either specialize in a particular area or identify themselves as generalists. While generalists may be helpful in some cases, you need an attorney that specializes in tax law. And you need to find one with a good reputation and track record. Check him or her out to make sure he or she is in good standing with the bar association and with the IRS.

2. Fee Schedules. Tax attorneys aren't cheap. They work hard to specialize in their particular area of expertise and they provide a valuable service to folks who find themselves in hot water with the IRS. Because of their value, they can get away with charging a lot for their services. So before you decide on one particular attorney, make sure you can afford his or her services. Fees will vary depending on how complex your case is, where you live, and the particular attorney you're considering hiring. There are three typical fee structures.

• Hourly Rate. This is very common among tax attorneys. He will charge you based on the amount of time he spends working on your case. When you have your free consultation with him, he will be able to give you an idea of how many hours will be required for him to resolve the issues.

• Flat Rate. As the name suggests, the tax attorney will review your case and tell you exactly how much he will charge you.

• Contingency. In this case, the attorney will charge you a fixed percentage of whatever she is able to recover on your behalf. But you will be responsible for other expenses such as phone charges, copies, filing fees, court costs, and others.

3. Retainers. Regardless of the type of fee structure your attorney uses, you will probably be charged a retainer. A retainer is essentially a down payment for the attorney's services and part of it will be paid back to you once the work is completed.

4. Other Questions to Ask. When you're interviewing potential tax attorneys you also need to find out if the tax attorney will be handing off your case to someone else or taking care of it himself or herself. Handing it off to someone else shouldn't necessarily be a deal-breaker, but you should ask to speak to the person who will actually be handling your case. Find out how many cases similar to yours your potential attorney has handled. How many went to trial and how many were settled outside of the courtroom? Are you comfortable sharing sensitive, personal, and financial information with this person?

Although the cost of hiring a tax attorney may seem prohibitive, the cost of not hiring a tax attorney is far greater. Tax attorneys can negotiate on your behalf such that you end up having to pay the IRS far less than you would had you represented yourself. They can advocate on your behalf as you interact with IRS agents, which makes the whole process much less intimidating and scary. So instead of asking yourself whether you can afford a tax attorney, ask yourself if you can afford not to hire one.