When Are Tax Preparation and Tax Attorney Fees Deductible?

Although Section 212 of the federal tax code and the corresponding regulation at Section 1.212 do not specifically provide for the deduction of tax preparation fees or fees paid to an attorney giving tax advice, it does provide for the deduction of expenses incurred “in connection with the determination, collection, or refund of any tax.” This has been widely interpreted to mean fees for tax return preparation and legal advice on the tax treatment of items are deductible on Schedule A of an individual income tax return.

They may also qualify as business expenses if they arise from […]