Tax Relief AnswersWhat Tax Relief Companies Charge
The short answer
Tax relief companies set their own prices, fees vary widely, and no agency publishes a standard rate. The FTC warns that upfront fees "can be thousands of dollars", and in a 2010 case it said one company charged about $3,200 to $25,000 up front. When debt relief is sold by phone, the Telemarketing Sales Rule at 16 CFR 310.4(a)(5) bars the seller from collecting any fee until it has settled or changed a debt and you have made a payment under that deal.
What the IRS itself charges, for comparison
The IRS charges the same whoever applies, so any company fee comes on top.
| IRS option | IRS fee as of October 2026 | Source |
|---|---|---|
| Short-term payment plan (up to 180 days) | $0 | IRS payment plans |
| Long-term payment plan, direct debit, applied online | $29 | same |
| Long-term payment plan, other payment, applied online | $69 | same |
| Offer in Compromise | $205 application fee plus an initial payment; both waived for individuals who meet the low-income rules | IRS Offer in Compromise |
| Low Income Taxpayer Clinic representation | Free or a small fee | Taxpayer Advocate Service |
Common fee structures
Firms bill in different ways, and some combine them.
| Structure | How it works | What to ask |
|---|---|---|
| Flat fee | One price for a defined job, such as a payment plan request or a full Offer in Compromise | What exactly is included, and what would trigger an extra charge |
| Two phases | A first fee to pull your IRS records and review your finances, then a second price for the resolution itself | Is the first fee credited toward the second, and do you keep the file if you stop after phase one |
| Hourly | Billed by time, often against a retainer paid in advance | The hourly rate of each person, and how often you get an itemized bill |
| Monthly fees | A recurring charge while the case is open | When it ends; the FTC warns that monthly "maintenance" fees add up and can be dragged out |
What the law says about when a firm can charge
The Telemarketing Sales Rule covers debt relief services sold by telephone, including calls you make in response to an ad for debt relief (16 CFR 310.6(b)(5)). For those sales, 16 CFR 310.4(a)(5) allows a fee only after two things happen:
- The seller has settled, reduced or otherwise changed at least one debt under an agreement you signed.
- You have made at least one payment under that agreement.
A seller may hold your money in a dedicated account only if it sits at an insured bank, you own it, and you can withdraw from the service at any time without penalty. Separately, 16 CFR 310.3(a)(2)(x) bars misrepresenting how much you may save or how long it will take. Whether the rule covers a particular contract depends on how it was sold.
Questions to ask before you pay anything
- What is the total fee, in dollars, for my case from start to finish?
- What do I pay before any result, and what does that money buy?
- What exactly is the result that triggers each payment?
- What is the refund policy if the IRS rejects my request or I end the contract?
- Are there monthly fees, and when do they stop?
- Which IRS option do you expect to request, and could I request it myself for free?
- Who is the licensed enrolled agent, CPA or attorney on my case, and will that person sign Form 2848?
See how tax relief companies work and the red flags before you sign.
FAQ
How much do tax relief companies charge?
Fees vary widely and no agency publishes a standard rate. The FTC warns that upfront fees can run to thousands of dollars, so get the total price in writing before you agree to anything.
Can a tax relief company charge me before doing any work?
For debt relief services sold by phone, 16 CFR 310.4(a)(5) bars any fee until the seller has settled or changed a debt and you have made a payment under that agreement.
Can I get a refund from a tax relief company?
It depends on the contract. The FTC advises asking how a company bills and whether it gives refunds before you agree to anything.
Does the IRS charge less if a company applies for me?
No. As of October 2026 the IRS charges the same fees whoever applies, so any company fee is added on top of the IRS fee.