Top 7 Tax and IRS Lawyers in Honolulu

How to choose between these firms

For complex IRS controversy and Tax Court litigation — Goodsill (with Joy Miyasaki's IRS Office of Chief Counsel background) and Torkildson Katz (with Ron Heller's American College of Tax Counsel fellowship) have the deepest Hawaii tax-controversy benches.

For tax-driven transactional structuring — Goodsill, Cades Schutte, Carlsmith Ball, and Starn O'Toole handle this work for mid-market and larger Hawaii deals.

For routine IRS audit defense, installment agreements, and Offers in Compromise — Tax Lawyers Group APC and Tax Law Offices of David W. Klasing offer tax-only boutique pricing.

For criminal tax exposure and FBAR/offshore disclosures — Tax Law Offices of David W. Klasing has explicit criminal-tax-defense focus. Torkildson Katz also handles serious controversy matters.

For Hawaii GET and TAT disputes — Goodsill, Torkildson Katz, and Cades Schutte have specific Hawaii state-tax practice depth.

What a tax / irs matter typically costs in Honolulu

IRS correspondence audit response: $1,500–$5,000 flat fee.

IRS office or field audit defense through resolution: $5,000–$75,000+ depending on complexity and adjustments.

Offer in Compromise preparation: $3,500–$10,000 flat fee.

Installment agreement and collection-due-process work: $1,500–$8,000.

U.S. Tax Court petition and trial: $25,000–$200,000+.

Hawaii GET audit defense: $3,500–$30,000+ depending on years and adjustments.

FBAR / streamlined disclosure: $5,000–$50,000+ depending on number of accounts and willfulness analysis.

Estate-tax planning (Hawaii and federal): $3,500–$25,000+ depending on assets, generation-skipping issues, and trust complexity.

Hourly billing rates: Honolulu tax boutiques: $325–$550/hour. Mid-size firms: $450–$850/hour for senior tax partners.

Red flags to watch for when picking this kind of firm

The big legal directories list hundreds of attorneys for this kind of work. Most are competent. A few are problematic. Watch for these patterns.

Guaranteed outcomes. No ethical attorney can promise a specific result. If a firm guarantees a court win, a tax debt cut to zero, or a perfect contract that "can never be challenged," walk away.

The disappearing partner. You meet a senior name at the intake meeting, then never speak to that person again. Your file gets handed to an unsupervised junior or a paralegal. Ask in writing who will be your day-to-day attorney and what the supervision structure looks like.

Pressure to sign on the spot. Reputable firms send you the engagement letter, give you time to read it, and let you take it home. Same-day "you have to retain us today" tactics are almost always a sign of a volume mill, not a craftsperson's practice.

No verifiable track record. The firm should be able to point to peer rankings, bar specialization, published case results, or named clients. "We have helped thousands" is marketing copy. Specific case names, transaction sizes, or third-party recognitions are evidence.

Vague fee terms. "Don't worry about cost" is a red flag. Every legitimate attorney will give you a written engagement letter with the fee structure, what is included, what triggers extra charges, and what happens if you terminate the relationship.

10 questions to ask in your free consultation

Most firms on this list offer a free or low-cost initial consultation. Use it. Bring a written list of questions and write down the answers. Compare across at least two firms before you sign anything.

1. Who, specifically, will handle my matter day to day? Get a name and an email. Confirm that this person, not the partner you met at intake, will be your primary point of contact.
2. How many matters like mine have you handled in the last three years? You want a real number, not a brochure line.
3. What is your fee and what does it cover? Get the answer in writing before you sign. Hourly, flat, contingency, or hybrid — and what triggers a change.
4. What costs am I responsible for outside the legal fee? Filing fees, expert witnesses, third-party services, courier, transcription. Ask now to avoid surprise invoices.
5. What is a realistic range of outcomes for a situation like mine? A good lawyer will give you a range with assumptions. A bad one will only describe the best case.
6. How long will it take? Honest estimate with the assumptions stated.
7. Who else might be involved? Co-counsel? Experts? Local counsel? Larger matters routinely involve outside specialists.
8. How and how often will I hear from you? Email-only? Weekly calls? Status updates on a schedule? Set the expectation up front.
9. What happens if I want to change lawyers later? The rules allow it; the fee is sorted between firms.
10. What is the worst case for me here? A lawyer who refuses to discuss downside risk is selling, not advising.

What is specific about tax / irs matters in Honolulu

Hawaii GET is everywhere. HRS Chapter 237 imposes Hawaii's General Excise Tax on virtually all business activity. Unlike most state sales taxes, GET applies to services, rentals, and most business-to-business activity. The 0.5% Honolulu county surcharge stacks on the 4% state rate. Honolulu businesses must register for a GET license (Form BB-1) — the most common compliance miss for new Hawaii businesses.

Hawaii TAT and short-term rentals. Hawaii's TAT plus Honolulu county TAT (13.25% combined) applies to all transient accommodations under 180 consecutive days. Honolulu Bill 89 (Ordinance 19-18) and successor ordinances further restrict short-term rentals. Tax counsel and zoning counsel must coordinate.

Hawaii's tax department. Hawaii Department of Taxation administers GET, TAT, income tax, and conveyance tax. Audit processes mirror federal IRS practice but have Hawaii-specific notice and protest deadlines that are easy to miss without local counsel.

Federal Tax Court venue. The U.S. Tax Court holds trial sessions in Honolulu. Petitioners can also elect to litigate refund cases in the U.S. District Court for the District of Hawaii or the U.S. Court of Federal Claims. Forum choice matters and should be made with counsel.

Hawaii residency rules. Hawaii's residency test is fact-driven. Domicile, days present, ties, and intent all factor in. Multi-state taxpayers with Hawaii ties commonly under-plan this; the cost of a residency audit is significant.

FBAR and offshore reporting. Honolulu's geographic and cultural ties to the Pacific basin mean Hawaii residents frequently have foreign accounts. FBAR (FinCEN 114) and FATCA reporting often get missed. Streamlined and voluntary-disclosure programs require attorney involvement.

Conveyance tax on Hawaii real estate. Hawaii imposes conveyance tax on real-estate transfers at rates that scale with property value and use. Tax-planning on Hawaii real-estate transactions deserves explicit attention.

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