Do I need a tax lawyer or a CPA in Phoenix?
A CPA handles most filing and routine notices. Bring in a tax lawyer when there's a dispute, a large unpayable balance, a lien or levy, payroll-tax trouble, or any hint of fraud or criminal exposure — and when you want attorney-client privilege, which a preparer can't provide.
What's Arizona's state income tax rate?
Arizona has a flat 2.5% individual income tax, one of the lowest rates in the country, administered by the Arizona Department of Revenue. The state runs its own audits and collections, so an Arizona tax issue can be separate from any federal IRS matter.
Can a Phoenix tax lawyer settle my IRS debt for less?
Sometimes, through an offer in compromise — but only if you genuinely qualify based on your income, assets, and ability to pay. Be wary of firms promising to settle "pennies on the dollar" without reviewing your finances. A real evaluation, then an honest answer, is what to expect.
What does a tax lawyer cost in Phoenix?
Resolution work is often flat-fee: roughly $2,500-$7,500 for an offer in compromise or complex installment agreement, less for penalty abatement. Audit defense and tax litigation are hourly, commonly $300-$600/hour, with national firms higher.
What is Arizona's Transaction Privilege Tax?
TPT is Arizona's version of a sales tax, owed by the business for the privilege of doing business in the state, and Phoenix adds a city TPT on top. Misclassified transactions and missed TPT filings are a frequent source of Arizona business-tax disputes.
How long does an offer in compromise take?
The IRS typically takes 6-12 months to evaluate an offer in compromise, and you generally must stay current on filings during that time. A Phoenix tax lawyer can tell you early whether an offer is realistic before you invest months in the process.