How Much Does Tax Resolution Cost? A Guide to Realistic Fees

Fees are driven by: the complexity of your case (single year vs. multiple years, one tax type vs. several); the resolution type (phone call for FTA vs. 18-month OIC process); the amount of documentation work required; whether IRS Appeals or Tax Court involvement is needed; and the provider's overhead and business model.

Setting up a Streamlined Installment Agreement (under $50,000) can cost $500–$1,500 with a professional. Non-Streamlined agreements requiring a financial disclosure typically range from $1,500–$3,500 depending on the complexity of the financial analysis. Some professionals charge hourly rates in the $200–$400/hour range for this work.

OIC preparation is the most work-intensive resolution service. Realistic fees range from $3,500–$8,000 for individual cases with straightforward finances. Complex cases with multiple years, business income, or significant assets may run $8,000–$15,000. Be wary of fees significantly above this range from national tax relief companies that charge $15,000–$25,000 for the same work.

Correspondence audit representation typically costs $1,500–$4,000 depending on the number of issues. Office audit representation ranges from $3,000–$8,000. Field audit representation is the most complex and can range from $5,000–$20,000 depending on the issues involved. Audit Appeals add $2,000–$5,000 on top of audit fees.

Penalty Abatement" class="text-primary underline underline-offset-2 hover:text-primary/80">First-Time Penalty Abatement by phone is simple enough that many tax professionals include it as part of a larger engagement. Standalone FTA requests typically cost $300–$800. Reasonable Cause abatement preparation (written request with documentation) usually costs $800–$2,000.