Pricing transparency
How much does tax resolution cost?
Real fee ranges for every type of IRS resolution case, what drives the price, and the red flags that mean you're being overcharged. Written by a licensed CPA — not a salesperson.
- Last reviewed
- Jun 2026
- Reviewed by
- Franklin Sofi
- Read time
- 7 min
Typical fee ranges by service
These are honest, current ranges for credentialed (CPA, EA, or attorney) representation. Lower numbers in each range reflect simpler cases; higher numbers reflect complex multi-year, multi-entity, or active-collection situations.
| Service | Typical fee | What drives the price |
|---|---|---|
| Free initial consultation | $0 | Should always be free — used to scope the case and pull IRS transcripts before quoting. |
| IRS transcript pull & case diagnosis | $0 – $500 | Often bundled into the engagement fee. Required before any honest quote. |
| Simple installment agreement (1–2 years owed, no levy) | $750 – $2,500 | Balance owed, whether streamlined or full financial disclosure required. |
| Currently Not Collectible (CNC / Status 53) | $1,500 – $3,500 | Form 433-A or 433-F preparation, hardship documentation, ACS or Revenue Officer negotiation. |
| Penalty abatement (First-Time or reasonable cause) | $750 – $2,500 | First-Time Abatement is straightforward; reasonable cause requires a written narrative and supporting documents. |
| Offer in Compromise (OIC) | $3,500 – $8,500 | Number of years, business vs. individual, asset complexity, whether currently in collection action. |
| Wage garnishment or bank levy release | $1,500 – $4,500 | Speed matters — bank levies have a 21-day window. Often paired with a longer resolution engagement. |
| Unfiled returns — preparation | $350 – $1,200 per return | 1040, business returns (1120-S, 1065, 1120), Schedule C complexity, missing records. |
| IRS audit representation (correspondence) | $1,500 – $4,000 | Number of issues, document substantiation effort. |
| IRS audit representation (office/field) | $4,000 – $12,000+ | Schedule C/E, partnerships, S corps, expanded scope, Appeals likelihood. |
| Payroll tax (941) workout | $5,000 – $15,000+ | Number of quarters, Trust Fund Recovery Penalty exposure, Revenue Officer involvement. |
| Trust Fund Recovery Penalty defense (Form 4180) | $3,500 – $8,500 | Number of responsible-person interviews, allocation analysis, appeal of assessment. |
| U.S. Tax Court litigation | Refer to tax attorney | CPAs do not litigate (unless USTCP-admitted). Expect attorney hourly fees of $300–$600+/hr. |
Fees are illustrative ranges based on the experience of a small CPA firm. Your case may fall outside these ranges. A real quote requires pulling your IRS transcripts first.
IRS fees you'll also pay
Professional fees are separate from what the IRS charges directly. Common IRS user fees:
- Installment agreement setup: $22 (online direct debit) up to $225 (mail-in non-direct-debit). Reduced or waived for low-income.
- Offer in Compromise application: $205 application fee + 20% lump-sum payment (both waived under low-income certification).
- Reinstating a defaulted IA: $89.
- Lien withdrawal or discharge: No fee for withdrawal; lien-discharge applications are free but may require an appraisal.
Green flags
- Free transcript pull and case diagnosis before any fee quote.
- Flat fee tied to a defined scope of work — in writing.
- Direct access to a credentialed practitioner (CPA, EA, or attorney) — not just a 'case manager.'
- Engagement letter that lists exactly what is and isn't included.
- Refund policy if the engagement is terminated before work begins.
- Honest acknowledgment that some cases cannot be settled and that 'pennies on the dollar' isn't a guarantee.
Red flags
- "Pennies on the dollar" guarantees before the firm has seen your transcripts.
- Fees quoted as a percentage of what you 'save' — illegal under Circular 230 §10.27 in most situations.
- High-pressure tactics during the first call (e.g., 'sign today or the price doubles').
- Salespeople with no credentials promising IRS outcomes.
- No engagement letter, or one that doesn't define the scope.
- Upfront fee collected before pulling transcripts or before assigning a credentialed practitioner.
- Public regulatory actions, FTC enforcement, or large numbers of BBB complaints.
Why two firms quote different prices for the "same" case
Tax resolution is not commoditized. The price difference between two firms usually reflects:
- Who does the work. A CPA's billable hour costs more than a paralegal's — but a paralegal can't sign Form 2848 or negotiate an OIC.
- What's actually included. A $2,000 "installment agreement package" often excludes transcript review, financial analysis, levy defense, and unfiled-return preparation — so the real bill ends up much higher.
- The marketing tax. National "tax-relief" call centers spend $1,500–$3,000 of customer-acquisition cost per signed client. That cost shows up in your fee.
- Honesty about your case. A firm that quotes you the maximum on day one will find ways to bill it. A firm that quotes the minimum will surprise you with addenda. The honest quote sits in the middle and is in writing.
When you don't need to pay a professional
Not every IRS problem needs a paid representative. Real CPAs will tell you this on the first call:
DIY — owe under $50,000 and current on filings
The IRS Online Payment Agreement portal will set up a streamlined installment agreement in minutes. No professional fee required.
DIY — First-Time Penalty Abatement
If you have a clean prior 3-year history, call the IRS at 800-829-1040 and request FTA on a single penalty period. The IRS grants it on the phone if you qualify.
Low Income Taxpayer Clinic (LITC)
If your household income is at or below 250% of the federal poverty level, an LITC may represent you for free. Find one at taxpayeradvocate.irs.gov/litc.
Taxpayer Advocate Service (TAS)
Free IRS-internal advocate for taxpayers facing economic hardship or IRS process failures. Call 877-777-4778.
The bottom line
Real tax resolution costs real money, but it should never be a mystery. Ask any firm for a written engagement letter that lists exactly what's included, who's doing the work, and what triggers an additional fee. If they can't produce one — or won't pull your transcripts before quoting — keep looking. We're happy to be the second opinion: the first call is free.
Want a real quote — for free
We'll pull your IRS transcripts and tell you what your case will actually cost.
The first call is free. The clarity it gives you is the whole point.
15 minutes with a credentialed CPA. We'll pull your IRS transcripts, walk through your real options, and tell you honestly whether you need representation — or whether you can handle it yourself.