How much does tax relief cost? Fees, IRS charges and what to ask

What tax relief costs

Professional tax resolution fees vary widely, from a few hundred dollars for simple filing to several thousand for complex cases, and many firms don’t publish them. Separately, the IRS charges its own fees, such as $29 to $178 to set up a payment plan and $205 to apply for an Offer in Compromise, with waivers for lower-income taxpayers.

Reviewed by [REVIEWER NAME], Enrolled Agent · Last reviewed [DATE]

Two separate costs

What you pay a professional for their work.
What you pay the IRS: your tax, penalties and interest, plus any IRS fees.

Keep them separate. A legitimate firm never asks you to send your IRS payments through it.

IRS fees

What	IRS fee
Short-term plan (180 days or less)	$0
Long-term plan, online, automatic bank payments	$29, waived for lower-income individuals
Long-term plan, online, other payment methods	$69
Long-term plan by phone, mail or in person	$107 with automatic payments, $178 otherwise
Offer in Compromise application	$205 plus an initial payment, waived if you qualify as low-income

Professional fees

Firms usually charge in one of three ways:

Flat fees, sometimes per year filed and per type of resolution.
A two-step model: an investigation fee, then a quote for the resolution.
Hourly billing, more common with CPAs and attorneys.

Questions to ask before paying

What exactly does this fee cover, and what costs extra?
Is any of it refundable, and when?
Who will prepare and sign my returns, and who will represent me? What are their credentials?
Could I set up the payment plan myself? Why not?
Are you promising a result? (The right answer is no.)

Our prices

We publish ours: $79 for the IRS investigation, credited to your plan; [PRICE] per missing year; payment plan setup included. See pricing.

Common questions

Why do some firms charge a fee before quoting?

To pull your IRS records and see what’s actually going on. That’s reasonable if the fee is small, clearly defined and credited toward the work.

Is a higher fee more likely to get a better result?

Not necessarily. The IRS’s rules decide outcomes. What you’re paying for is accurate returns, a correct financial picture and someone who handles the IRS well.