Texas may not have a state income tax, but that does not mean businesses and individuals escape tax obligations. Franchise taxes, sales tax audits, payroll disputes, and federal IRS issues create legal exposure that can threaten livelihoods and business operations alike. The state’s business-friendly reputation attracts entrepreneurs and corporations, yet each entity faces complex compliance requirements that evolve with changing regulations.
When the IRS sends a notice or the Texas Comptroller initiates an audit, the response timeline is short and the stakes are high. Interest and penalties compound quickly. A tax attorney provides both the legal authority to negotiate directly with taxing agencies and the strategic insight to identify resolution pathways that accountants and enrolled agents cannot access.
What Tax Law Attorneys Handle
IRS Disputes and Audit Defense
Federal tax controversies range from correspondence audits questioning specific deductions to full-scale examinations of business operations. Tax attorneys represent clients through every stage of the audit process, from initial document requests through administrative appeals and, when necessary, Tax Court litigation. They identify procedural violations by IRS agents, challenge improper assessments, and negotiate settlements that minimize financial impact. Texas businesses face particular scrutiny in areas like energy tax credits, research and development deductions, and international transactions.
Collection Defense and Debt Resolution
Wage garnishments, bank levies, and property liens represent the IRS’s most aggressive collection tools. Tax attorneys intervene to halt these actions, often within days of engagement. Resolution options include offers in compromise, installment agreements, currently not collectible status, and innocent spouse relief. Each pathway requires documentation and negotiation that benefits from legal representation.
Business and Employment Tax Matters
Payroll tax disputes carry particular risk because the IRS can hold individual owners personally liable through trust fund recovery penalties. Tax attorneys defend business owners against personal assessments, resolve employment classification disputes, and address franchise tax issues with the Texas Comptroller. They also structure transactions and entity formations to minimize ongoing tax exposure. Texas franchise tax, though not an income tax, creates substantial obligations for businesses operating in the state.
State and Local Tax Matters
While Texas has no state income tax, businesses face sales and use tax obligations, franchise tax requirements, and local property tax disputes. The Texas Comptroller conducts sales tax audits that can result in assessments covering multiple years with penalties and interest. Tax attorneys represent businesses in Comptroller audits, administrative hearings, and appeals. They also advise on nexus issues for out-of-state companies doing business in Texas.
How to Choose a Tax Law Attorney
Dual credentials matter. Attorneys who also hold CPA licenses understand both the accounting mechanics that created the problem and the legal strategies available for resolution.
Tax Court admission. Verify the attorney is admitted to practice before the United States Tax Court. Many tax controversies ultimately require or benefit from the pressure that litigation capability provides.
IRS experience. Some tax attorneys previously worked as IRS agents or counsel. This insider perspective on agency procedures and priorities often proves invaluable during negotiations.
Fee transparency. Tax matters vary in complexity. Reputable firms provide clear fee structures before engagement, whether flat-rate for defined services or hourly for complex controversies.
Texas Tax Law Attorneys
Mixon Tax Law, PLLC
Location: Houston, Texas
Website: https://mixontaxlaw.com
Phone: (713) 814-4737
Phillip Mixon holds both CPA and law licenses, a rare dual qualification that enables integrated analysis of accounting issues alongside legal resolution strategies. His Big Four accounting background informs sophisticated tax planning while his litigation authority extends through federal Tax Court proceedings. The boutique firm focuses on IRS representation, audit defense, international tax compliance, and business tax controversies.
Practice Focus: IRS collection matters, federal tax audits and appeals, business and employment tax disputes, international tax compliance including FBAR and FATCA reporting
The Law Offices of Nemeth & Flores
Location: Dallas-Fort Worth, Texas
Website: https://www.myirsteam.com
Phone: (972) 426-2553
This Dallas-based firm focuses on IRS tax resolution for individuals and businesses throughout North Texas. The attorneys handle tax debt resolution, audit responses, and collection matters. The firm emphasizes local, personalized service rather than the national chain model common in tax resolution.
Practice Focus: IRS notices and correspondence, audit representation, collection defense, wage garnishment and levy release, offers in compromise, installment agreements
Ansari Law Firm
Location: Dallas, Fort Worth, San Antonio, Houston (multiple Texas offices)
Website: https://ansaritax.com
Phone: (214) 503-2566
This multi-state business and tax law firm maintains offices throughout Texas to serve clients facing sales tax audits, franchise tax disputes, and IRS controversies. The firm has built particular expertise in Texas Comptroller matters, helping businesses navigate state-level tax obligations. Client reviews consistently highlight responsive communication and favorable audit outcomes.
Practice Focus: Texas sales tax audits and appeals, franchise tax disputes, IRS representation, business tax planning, multi-state tax compliance
Costs and Fees
Tax attorney fees vary based on case complexity. Simple audit responses may cost $2,500 to $5,000 as flat fees. Complex multi-year controversies with significant liability often proceed on hourly billing at rates from $300 to $600 per hour. IRS collection cases typically range from $3,000 to $7,500 depending on the resolution pathway pursued. Most firms offer initial consultations at no charge to evaluate the case and provide fee estimates.
Frequently Asked Questions
When should I hire a tax attorney instead of using my CPA?
Engage a tax attorney when you receive any IRS notice, face potential criminal exposure, need representation in Tax Court, or require the protection of attorney-client privilege. CPAs handle compliance and planning effectively, but legal representation becomes essential when disputes arise.
Can a tax attorney really reduce what I owe the IRS?
Yes. Through offers in compromise, penalty abatement, statute of limitations analysis, and audit challenges, tax attorneys frequently reduce assessed liabilities. The IRS accepts qualifying offers in compromise at reduced amounts when taxpayers demonstrate inability to pay the full balance.
What happens if I ignore IRS notices?
Ignoring IRS notices allows the agency to assess taxes based on their calculations, typically the highest possible liability. They can then proceed to collection actions including wage garnishment, bank levies, and property liens without further notice. Response deadlines are firm, and missed deadlines eliminate appeal rights.
Last Updated: January 2026
Disclaimer: This directory is provided for informational purposes only and does not constitute legal advice, endorsement, or recommendation of any attorney or law firm. Information about attorneys and law firms was compiled from publicly available sources and may not be current or accurate. We make no representations or warranties about the qualifications, experience, or quality of any attorney listed. Fee estimates are approximations only and actual costs may vary significantly. Always verify attorney credentials with the State Bar of Texas, confirm current contact information, and conduct your own due diligence before hiring legal counsel. No attorney-client relationship is created by use of this directory.