When you need a Honolulu tax or IRS lawyer
A tax lawyer is the person you call when taxes stop being about filing and start being about defending. That includes an IRS audit, a notice of deficiency, back taxes you cannot pay, a lien on your property, a levy on your wages or bank account, or a Hawaii Department of Taxation dispute over general excise tax. A tax attorney can talk to the IRS for you, challenge what they claim you owe, and negotiate a way out, whether that is a payment plan, a settlement, or a finding that you cannot pay right now.
The difference between a tax lawyer and a CPA matters here. A CPA prepares and files. A tax lawyer represents you in a fight, and the advice you give a lawyer is generally protected by attorney-client privilege, which a CPA's is not. When the words "penalty," "fraud," "criminal," or "Tax Court" appear, that is lawyer territory. For ordinary return preparation, a CPA is usually all you need.
Talk to a Honolulu tax lawyer if any of the following fits your situation.
- You received an IRS audit letter or a notice of deficiency.
- You owe back taxes you cannot pay in full.
- The IRS filed a lien or is threatening to levy your wages or bank account.
- You have unfiled returns from prior years you need to clean up.
- You owe Hawaii general excise tax (GET) or have a state tax dispute.
- You are worried an issue could turn into a fraud or criminal tax case.
- You want to challenge an IRS decision in US Tax Court.
- You are dividing a business or estate and need the tax consequences handled.
How a Honolulu tax matter usually moves
For collection problems, step 1 is pulling your IRS account transcripts so you know exactly what they claim and by when. Step 2 is stopping the bleeding, requesting a hold on collection or a collection due process hearing if a deadline is near. Step 3 is the resolution: an installment agreement to pay over time, an offer in compromise to settle for less if you qualify, or currently-not-collectible status if you genuinely cannot pay. For an audit, the lawyer responds to the examiner, supplies records, and argues the law. If the IRS will not budge, you can petition the US Tax Court, which holds sessions in Honolulu. Most matters resolve without a trial, but the deadlines on IRS notices are short, so moving quickly protects your options.
What this typically costs in Honolulu
$300-$600
Typical hourly rate
$2,500-$7,500
Flat fee, audit or offer
$750-$1,500
Installment agreement
Varies
Tax Court litigation
Honolulu tax attorneys generally bill $300 to $600 an hour. Many handle a defined project for a flat fee: an installment agreement might run $750 to $1,500, while an audit defense or an offer in compromise is often $2,500 to $7,500 depending on how complex your finances are. Litigation in US Tax Court is billed hourly and costs more. Ask for a written estimate, what the flat fee covers, and what happens if the IRS rejects a first proposal.
What is specific about tax law in Hawaii and Honolulu
- General excise tax, not sales tax. Hawaii charges a general excise tax (GET) on a business's gross income rather than a sales tax. On Oahu the rate is 4.5 percent including the county surcharge, and because it hits gross receipts, it catches many new owners off guard.
- Hawaii Department of Taxation. State tax disputes, GET, and Hawaii income tax run through DOTAX, separate from the IRS, and a Honolulu tax lawyer can handle both.
- US Tax Court sits in Honolulu. You do not have to fly to the mainland to challenge an IRS deficiency; the Tax Court holds trial sessions in Honolulu.
- Federal rules, local lawyer. IRS audits, collections, and appeals follow national rules, but a Honolulu attorney who knows the local IRS and DOTAX offices makes the process smoother.
- Deadlines are unforgiving. Many IRS notices give you 30 or 90 days to respond or petition. Missing the date can cost you the right to challenge the tax, so the first call should be early.