How Much Does Tax Resolution Services Cost?
The tax resolution services cost and pricing guide will help you create an initial budget for hiring a tax resolution firm or a licensed tax professional to help you end your tax issues. It outlines how much tax relief services cost, what to expect when hiring a firm, and red flags to watch out for.
At TaxCure, we understand that paying a tax resolution firm or a licensed tax professional to resolve your personal or business tax problems is a complicated decision, but we also know that hiring the right pro is an investment in your long-term financial security. As former owners of a tax resolution firm, we strive to cut through the clutter of review sites that list pricing estimates that are often inaccurate. Our goal is to empower you with the information you can rely on to help you set a budget.
Key takeaways
Don't sign up before you understand what you're getting. Make sure you know exactly which services are included and how fees are calculated before committing to any firm.
Be wary of firms that quote a price before pulling your transcripts. As one EA put it — if they're quoting before reviewing your financials, they're pricing their sales script, not your case.
See the full breakdown of costs by service type in the Tax Services Cost Guide below.
Most tax relief firms start with a free consultation. This gives you a chance to see if the company can handle your problem and to determine if they're the right fit for your needs. However, you need to be careful - a lot of the so-called "best" tax relief companies use the initial consultation as a sales pitch - they do whatever they can to get you to sign up for their services. To protect yourself, check out the section below on red flags before calling a tax relief company.
After the free consultation, most companies start with an investigation - this involves pulling your IRS transcript, talking with you about your finances, and creating a resolution plan. This part of the process takes a significant amount of time and work, so it's rarely free. Tax pros generally charge $500 to $1200 for this service, but in some cases, they may subtract those fees from the cost of your final services. Be wary of companies that offer a free or low-cost investigation - often, they just get you to do that so that you sign up for their services, and then, they overprice the services. As Timothy Simons, EA, MBA, explains, “If a firm quotes you a fee before pulling your transcripts and running your financials, they are not pricing your case. They are pricing their sales script.”
Then, the tax pro or resolution company moves forward with the resolution you have decided upon - depending on the situation, that may include filing tax returns, setting up payments, requesting penalty abatement, applying for a tax settlement, etc. The company may also need to stop collection actions such as appealing liens, wage garnishments, or levies, which may come with additional fees.
How Tax Resolution Fees Are Structured
The way a tax resolution company charges client fees varies by company. However, we can generalize how these fees are structured:
- Flat Fee Structure - Flat fees are generally determined before work starts. Generally, an investigation must be conducted first to determine what services will be performed. Flat fees can refer to two things:
- A flat fee for the total service. In other words, resolving everything from soup to nuts, including tax preparation for an IRS or state issue. Usually, if you have a problem with multiple tax agencies (IRS, State), there is a separate flat fee for each tax agency.
- Some firms may have flat fees for specific resolutions that vary based on your tax amount owed. In other words, a sliding fee scale for a payment plan based on the total amount you owe the IRS or State.
- Hourly Rate Structure - Some tax relief firms and licensed tax professionals will bill on an hourly basis. Their fees can range from $200-$550 per hour.
How Tax Resolution Companies Charge Fees
Once a tax resolution firm has detailed out their fees for specific services, ensure you understand how you will pay them via their contract or agreement:
- Total Fee Upfront – Some tax resolution companies or tax firms require the entire fee upfront. Others offer payment plans but will give you a discount if you pay in full.
- Part of the Fees Upfront – Some tax resolution companies or tax firms will ask for part of the fee upfront to get started. You end up paying the rest of the fee over a series of monthly payments.
- Continuous Monthly Payments Until Case Closure – Other tax companies continue to charge you a monthly fee until the case is complete. They may even have a hefty upfront fee.
How Much Does Tax Relief Cost?
The average tax resolution case tends to be around $3500-$5500 - that includes both tax prep and applying for IRS resolution options.
If a business, such as a partnership, LLC, C-Corp, or S-Corp, is involved, the fees will generally be in the $5000 to $7000. That's because tax prep for the business will generally lead to an overall higher cost, especially if you need to file payroll returns such as 940s or 941s.
Major firms that spend a great deal on advertising usually charge substantially more for the same services you can find elsewhere. Generally, the firms with nationwide name recognition spend so much on advertising that their fees need to be higher to compensate for marketing costs. To learn more about those firms, check out our guide to the worst tax relief firms.
Felecia Dixson, EA, CTRC explained how transparency helped a hesitant client feel confident in the investment:
“A small business owner came in after receiving several high quotes with vague promises, so they were understandably cautious about fees.
We focused on education first—breaking down what tax resolution services typically cost, how fees scale with complexity, and what each phase includes.
I clearly outlined what the investigation covered and what would trigger additional fees. As the case progressed, they saw the results: corrected returns, reduced liability, and an affordable agreement.
What changed their perspective was seeing clear milestones, written expectations, and consistent communication—no surprises, no upsells, just the plan we agreed to executed step by step.”
Other Factors to Consider With Tax Resolution Services Prices
Although the average case is between $3500-$5500, that doesn't mean that your fees will necessarily fall into that range. There are many different services offered by tax resolution companies that all vary in price. Usually, the more complicated and intensive the service, the higher the cost. For example, typically, an Offer in Compromise will carry higher fees than a simple payment plan.
Another factor in the price of the service is the tax amount owed by the taxpayer. As the tax amount increases, the complexity of services usually increases. For example, the IRS requires more documentation and financial information for taxpayers that owe over $50,000. By extension, the more you owe, the higher fees you may end up paying, and conversely, if you don't owe much, the fees for tax relief services may be lower.
Tax Relief Services Cost Guide
Below you will find the standard services offered by tax relief companies and the average fees associated with each service. Realize, in most cases, tax preparation is a separate fee in and of itself unless the tax preparation is simple.
| Service | Typical Cost Range | Complexity | Notes |
|---|---|---|---|
|
Initial investigation
Transcript review & financial analysis
|
$500 – $1,200 | Low | Often credited toward full engagement |
|
Installment agreement
IRS or state payment plan
|
$2,500 – $3,500 | Moderate | Higher for business cases |
|
Partial payment installment
Pay less than owed over time
|
$3,500 – $5,000 | High | Requires more financial documentation |
|
Penalty abatement
Remove or reduce IRS penalties
|
$250 – $1,000 | Low | FTA, reasonable cause, or statutory |
|
Offer in compromise
Settle for less than full balance
|
$4,000 – $7,500 | High | Confirm appeal support is included |
|
Currently not collectible (CNC)
Hardship / temporary pause on collections
|
$2,500 – $4,000 | Moderate | Also called hardship status |
|
Innocent spouse relief
Separate liability from a spouse's debt
|
$3,500 – $5,000 | High | Varies by type of relief requested |
|
Tax-related identity theft
Resolve fraudulent filings
|
$2,500 – $5,000 | Varies | Depends on case complexity |
|
Individual tax preparation
Personal returns, per year
|
$350 – $550 | Low | Higher if self-employed or multiple years |
|
Business tax preparation
Partnerships, LLCs, corps
|
$500 – $2,000 | Varies | Depends on return type & bookkeeping needs |
Initial Investigation: Tax Transcript Review, Compliance Check, & Financial Analysis
To determine what needs to be done, the tax firm or one of the firm’s licensed tax professionals will obtain your tax transcripts, sometimes by filing Form 4506-T. During this process, the tax pro learns how much you owe, including tax debt, penalties, and interest, when the tax debt expires, and whether or not you have unfiled tax returns. Then, the tax relief pro learns about your financial situation to determine which relief programs you may qualify for.
Felecia Dixson, EA, CTRC shares how a proper investigation uncovered the real issue and led to a better outcome:
“A self-employed client came to me with multiple unfiled returns, aggressive IRS notices, and a large flat ‘offer in compromise’ quote from a national firm that had never pulled transcripts or reviewed finances.
Instead of quoting a big resolution fee, I started with a clearly defined, low, fixed-fee investigation. That engagement covered pulling IRS transcripts, identifying all unfiled years, reviewing balances, and completing a full financial analysis so we could see what options they truly qualified for.
The investigation showed the IRS had filed substitute-for-returns that overstated income and wiped out deductions, inflating the liability.
In the end, a corrected balance and affordable installment agreement solved the problem. Because expectations and fees were clear from day one, the client felt informed, protected, and in control.”
Timothy Simons, EA, MBA shared how a structured investigation and phased pricing rebuilt trust with a client who had been burned before:
“A client came to us with about $92,000 in IRS debt across seven tax years. He had already paid a national tax-relief firm that took his money but resolved nothing, so he was understandably skeptical.
We structured the engagement into two phases. First was a full investigation with transcripts, financial analysis, and a written recommendation he could review before committing further.
That investigation shaped the entire strategy. We identified that an installment agreement would work and structured payments to avoid triggering additional IRS scrutiny.
Because expectations, deliverables, and pricing were clearly defined at each step, the client could verify the value before moving forward. That transparency rebuilt trust and led to a successful outcome.”
As noted above, companies typically charge $500 to $1200 for these services. However, there are a few caveats - some companies will reimburse this fee if they realize during the review process that you're not going to qualify for relief. Others may credit this fee to the services that you get. In other cases, tax relief firms use a low investigation fee to convince you to sign up for their services, and that's why, even though low fees sound great, you need to be wary, as too-low fees can signal potential problems with the company you're hiring.
Installment Agreements
If the tax resolution company is setting up a payment plan or installment agreement with the IRS or state for an individual, the average fee will range from $2500 to $3500. Many firms may charge you more for setting up a business-related payment plan.
Partial Payment Installment Agreement
Although similar to a regular Installment Agreement, a PPIA requires more work. This type of agreement often results in a taxpayer paying less than they owe. The average fee will range from $3500-$5000.
Penalty Abatement
Penalty abatement often runs as an add-on to an installment agreement (payment plan). However, it is also provided as a stand-alone service by many firms. Pricing ranges from $250-$1000. However, always make sure you are abating more penalties than the total fee - it doesn't make sense to pay $250 to abate just $100 in fees, for example. Some companies may structure a small baseline fee for penalty abatement coupled with a price equal to your tax savings. For example, the cost may equal 35% of the penalties reduced, along with a base fee of $250.
Offer In Compromise (OIC)
If you are pursuing an Offer in Compromise, expect the cost for OIC services to be around $4000-$7500, but keep in mind that the cost is an investment, as it's typically very advantageous to work with a tax pro for these cases. Always ensure there are no additional costs to appeal or place you in the next best resolution if the IRS or State does not accept your OIC. However, the cost varies based on your situation and the OIC tax services that you need.
Currently Not Collectible Status (Hardship aka CNC)
A CNC usually runs around $2500-$4000 on average.
Innocent Spouse Relief
Innocent spouse relief costs around $3500-$5000 on average.
Tax-Related Identity Theft
This service ranges from $2500 to $5000, depending on the severity of the case.
Tax Preparation
The type of tax return that you need to file mostly determines the price. Is it a personal, estate, or business income tax return? Individual tax preparation ranges from $200 to $375 per year, with higher fees if you are self-employed. Tax preparation for partnerships and corporations can vary from $500 to $2,000, depending on the complexity of the return. If you need bookkeeping services to complete a tax return, then you will usually pay an hourly rate.
It is essential to understand that there are no “special programs” that certain tax firms offer that others cannot provide. Some tax resolution firms can handle certain state taxes or certain types of taxes better than others. In the end, the experience of the licensed tax professionals working your case counts. Just because a tax professional is a CPA, EA, or tax attorney, does not mean they have tax resolution experience.
Red Flags - How to Protect Yourself From Deceptive Pricing Practices
Unfortunately, there are some shoddy practices within the tax relief industry - that's why TaxCure was created to increase transparency in this industry and to help taxpayers connect with experienced, trustworthy tax professionals. As Felecia Dixson, EA, CTRC warns, “One deceptive pricing practice I’ve seen is the ‘low entry, high back-end’ game: firms advertise a cheap investigation fee, then later reveal a much larger charge for the actual resolution work, leaving taxpayers feeling pressured to continue.” To protect yourself, be aware of these red flags:
- Misleading program names - Tax relief companies often try to create buzz by using misleading program names for tax relief. For instance, they might really push the idea of a limited-time Fresh Start program, one-time tax forgiveness, or even something that piggybacks on current events like "Trump" tax forgiveness. Avoid these companies and work with pros who are straightforward about which type of relief they're applying for (installment agreement, offer in compromise, innocent spouse relief, etc).
- Deceptive service names - Some companies may also use program names that vary slightly from the IRS's real relief programs - for instance, they may call an installment agreement an affordable payment plan. While that's not intrinsically problematic, it is something that these companies do purposefully - if you don't know the name of the program, it's harder for you to research options on your own, and then, you have to use their services.
- Promising results before doing an investigation - A seasoned tax pro can often tell you which relief programs you may qualify for, with just a few details about your situation. But that said, you need to be very wary of companies that make big promises before doing an initital investigation. Some companies will promise you that they can settle your debt before they understand your personal finances or your history of compliance, and they're often just overselling services to get you to pay upfront.
Timothy Simons, EA, MBA highlights another common issue taxpayers should watch for:
“The most common one is a large upfront retainer with no defined deliverable. A firm charges thousands to ‘open your case,’ but the client receives no real analysis, no written plan, and no actionable recommendation.
Before you pay anyone, ask what specific deliverables you will receive. A legitimate firm will clearly define what you’re getting and separate investigation from resolution work.”
Why You Should Use TaxCure to Find Help for Your Tax Problems
Our experience in the tax resolution industry allows us to provide you with this pricing guide. As a mission, we decided to provide better transparency to the tax resolution industry by allowing taxpayers to find a tax professional who specialized in their specific tax agency, tax type, tax problem, and more. Start your search for a top-rated tax professional below. Our technology allows you to filter by the types of problems, solutions, and agencies that the professionals specialize in. Feel free to talk to multiple professionals. Also, consider reading our How to Find the Best Tax Relief Company guide.
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