Theoretically, it is possible to get the IRS to pay your attorney fees and costs if you prevail in a dispute with the agency. Such fees and costs can include both administrative costs and litigation costs.
Administrative Costs
Administrative costs are costs you incur while dealing with the IRS internally, before your case goes to court. These include fees you pay to CPAs, enrolled agents, or attorneys. The costs are recoverable only for services after the IRS sends you a formal notice of its decision or a notice of deficiency.
Generally, you cannot recover administrative costs for collection actions, such as the IRS issuing a lien or levy. However, you can recover costs for the court portion of a collection dispute.
Litigation Costs
Litigation costs are expenses for bringing a court case—whether in the U.S. Tax Court, a U.S. district court, or the Court of Federal Claims. These costs include attorney fees and other litigation fees and expenses.
In practice, collecting fees and costs from the IRS is notoriously difficult. To collect, you must overcome seven hurdles.
Hurdle 1: You Must Satisfy ... Log in to view full article.
