The way a tax resolution company charges client fees varies by company. However, we can generalize how these fees are structured:
Flat Fee Structure
Many tax relief firms use the term “flat fees.” 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.
Second, some firms may have flat fees for specific resolutions that vary based on your debt level. 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.