How much does a tax lawyer cost in Denver?
Denver tax attorneys typically bill $295–$650/hour. Routine audit representation runs $2,500–$15,000 depending on complexity and how far the audit progresses. Offer in Compromise representation is usually $3,500–$10,000 flat. Tax Court litigation moves to $25,000+ retainer plus hourly.
When should I hire a Denver tax lawyer instead of a CPA?
Use a CPA for return preparation, planning, and routine compliance. Hire a tax lawyer when there is a dispute — an audit moves to appeals, you have unfiled returns, you owe more than you can pay, you receive a Notice of Deficiency, the IRS opens a criminal investigation, or you need attorney-client privilege protecting sensitive communications. A CPA cannot give you full privilege.
What is an Offer in Compromise and do I qualify?
An Offer in Compromise lets you settle your IRS debt for less than the full amount owed. You qualify if the IRS calculates that your "reasonable collection potential" is less than the debt — meaning, considering your income, assets, and expenses, the IRS believes it could not collect the full amount. Most successful OIC submissions involve significant medical expenses, unemployment, or other hardship. About 30–40% of submitted OICs get accepted.
How long does an IRS audit take in Colorado?
A correspondence audit (mail-based, usually one or two issues) wraps in 3–6 months. An office audit at the Denver IRS office takes 6–12 months. A field audit — IRS agent at your business — runs 9–18 months on average and longer if it goes to appeals. Statute of limitations on assessment is generally three years from filing; the IRS will sometimes ask you to extend it during a long audit.
Does Colorado have its own tax disputes process?
Yes. The Colorado Department of Revenue runs its own audit and appeals process, separate from the IRS. State tax controversy typically involves Colorado income tax, sales/use tax, or wage withholding. Several Denver tax lawyers handle both IRS and CDOR matters, which matters because state and federal audits often surface together.
What happens if I owe the IRS and cannot pay?
Options in rough order of preference: short-term payment plan (under 120 days, free), long-term installment agreement ($31–$130 setup fee, monthly payments), Offer in Compromise (settle for less), Currently Not Collectible status (IRS pauses collection if you cannot pay anything), or bankruptcy (some income tax debts older than three years are dischargeable). A Denver tax lawyer can run the numbers and pick the best route.
What is the difference between a tax lien and a tax levy?
A federal tax lien is the IRS's legal claim against your property when you owe taxes — it shows up on credit reports and clouds title to real estate but does not take anything. A levy is the IRS actually taking property: bank account, wages, or other assets. A levy is usually preceded by multiple notices and a 30-day Final Notice of Intent to Levy. Both can usually be released or resolved with proper representation.