If you’ve got tax debt, you’ve come to the right place.
You may have been struggling with your tax debt for months or years, or maybe you just got your first letter from the IRS. In either case, dealing with the IRS can be a stressful, frightening, and overwhelming situation with which you wish you’d never gotten yourself involved in the first place.
Regardless of how you got here—an unpaid tax debt you didn’t know about, a few overdue tax returns, maybe a combination of things—you absolutely deserve not to have to deal with the IRS.
In our nearly twenty years of helping our clients deal with the scariest tax situations out there, we feel confident when it comes to tax relief. But for a first timer, getting tax relief can be almost as intimidating as tax debt. And we just don’t think that’s right.
One of the first questions some of our clients have is, “How much do tax relief companies cost?”
We think we should address this question once and for all. If you’ve ever wondered how much it will cost to get some relief from your tax debt, we want to make sure you have an answer.
So, here’s what you can expect to pay for tax relief—and what kind of services will come included.
Just like your finances are a little bit different than every other taxpayer out there, so is your specific need for tax relief. Not all tax relief is created equally, and let’s be real here: You probably wouldn’t want it if it were.
Depending on what other tax issues you may be struggling with—unfiled tax returns, bank levies, wage garnishments, even audit defenses—the specific price will probably vary somewhat. For this reason, there’s some limit to how exact we can get when outlining the typical cost of tax relief. But we can give you a rough idea!
The price you’ll pay for tax relief typically depends on two big factors: How much debt you have and how complex your case is.
One way that tax companies vary in price is with the tax debt totals they’re willing to take on. Some small companies are willing to handle very small amounts of tax debt, which may take less time and require less total time to resolve. This is one reason why a lot of companies may cite costs “starting” in the mid hundreds range, anywhere from $400-$800.
Many other companies will put minimum limits on the amount of tax debt a taxpayer needs to have to be taken on as a client. More tax debt typically indicates a more complex case, which is also often true of business tax cases. The totals range substantially, but typically start at a few thousand dollars and go up from there for individuals with more debt and businesses.
A Note on Pricing:
Tax debt doesn’t exist in a vacuum. Most people with tax debt typically have other tax issues, as well, ranging from unfiled tax returns to tax liens or wage garnishments.
Depending on the exact scenario you find yourself in, a tax relief company may choose one method over another, which will affect the price you pay for their services. For example, you may be a perfect candidate for an offer-in-compromise, or they may need to help you file a number of years of back tax returns.
A good tax company will handle every service you may need, but that’s exactly why the price can fluctuate.
There are a number of ways tax relief companies charge their fees, but they fall into three major categories. Most tax relief companies structure their payments depending on the details of a client’s case and ability to pay.
For some tax cases, a tax relief company will negotiate an installment agreement on behalf of their client. While there’s a lot of upfront work involved, there’s ongoing work required throughout the duration of the installments.
Sometimes, it’s simpler for the client to roll their tax relief payments into monthly installments alongside their payments to the IRS. Certain tax relief companies will allow for ongoing payments for a number of months or years until the case is resolved.
Depending on the tax debt and case at hand, tax relief companies may prefer a small upfront payment (a percentage or flat fee) to get started with a case. After that, the payment method will become monthly.
Other tax relief companies prefer—or require—the full fee up front. At times, this isn’t a hard and fast rule, but rather, an available payment option. You may even get a discount for paying in full up front.
There isn’t a one-size-fits-all tax resolution firm. Nearly all firms vary somewhat, so you need to do your due diligence and some serious research to find the right fit for you. However, there are a few things you should never compromise on:
A good tax relief company with an expert team will more than earn their keep.
They’ll answer your questions, deal with the IRS, find creative solutions, and help you find a path out of tax debt. When you’re struggling with tax debt, the last thing you want is to have to think about money. But doing the right research before you hire a tax company can save you trouble later on—and it may even help you save a buck, too.
Are you ready to get started? Try out our free live chat feature to get connect with a tax specialist today.
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