The purpose of the Tax Resolution Service is to assist taxpayers with the complicated process of resolving back tax concerns. Don’t let unfiled tax returns or unpaid taxes deter you.
The word “tax resolution” refers to a variety of services that assist taxpayers who have run afoul of the IRS. Tax settlement services, also known as IRS representation, tax problem recovery, or tax controversy, are in high demand.
‘’How much do tax resolution services cost’’?
It’s a challenging question to respond to. After all, many tax specialists don’t publicize their costs, and even when you do locate someone ready to discuss pricing, the response is almost invariably, it depends. To provide a more useful response to this topic, we have gathered data from tax professionals across the country over the last few years on how they price six different types of tax resolution services, including:
- Make a compromise offer
- Penalty reduction
- Spouse of the innocent
- Installment contract
- Recovery of the trust fund
- Liens and levies
How much does resolution services cost
Once a tax resolution firm has specified their rates for specific services, carefully consider how you will pay them according to their contract or agreement:
Total Fee Upfront — some tax resolution companies or tax firms demand payment in full upfront. Others offer payment options, but if you pay in full, you will get a discount.
Part of the Charge Upfront — to be started, certain tax resolution agencies or tax firms will ask for a portion of the fee upfront.The remainder of the cost is paid in a series of monthly installments.
Continuous monthly payments until case closure—other tax firms will continue to bill you on a monthly basis until your case is closed. It is possible that they will charge a large up-front price.
How Are Fees for Tax Resolution Structured?
The manner in which a tax resolution firm charges its client’s fees differs from one firm to the next. However, the following is generalized of how these fees are structured:
Structure of Flat Fees
The term ‘’flat fees’’ is used by many tax relief companies. There are two types of flat rates. A single price for the entire service. To put it another way, everything from soup to nuts is taken care of, including tax preparation for an IRS or state issue. There is usually a separate flat cost for each tax agency if you have a problem with numerous tax agencies.
Second, certain businesses may charge fixed costs for specific settlements that vary depending on the amount of money owed in taxes. In other words, a sliding charge schedule is dependent on the total amount you owe the IRS or the state for a payment plan.
Structure of hourly pay
Some tax relief companies and registered tax professionals charge by the hour. Their hourly rates might range from $200 to $550 dollars.
Offering free initial consultations is a great strategy to attract new customers. Because it’s free, there is no danger to clients who are looking for a solution to a difficult situation.
Consultations at a low cost
Charging a couple of hundred dollars for a first session assures that you are working with clients who can pay you. it will also assist clients in seeing your time as valued.
High priced consultations
If your organization is working with high-end individuals or corporations, charging significantly more for your initial session will almost certainly benefit you. A leading tax resolution expert, Michael Rozbruch, argues for the first fee of $1,250 to $1,500. But keep in mind that if you charge premium fees for your services, your customers will expect a premium experience with premium results.
Why do people seek out a firm that offers Tax Resolution Services?
There are numerous reasons why a person might require the assistance of a tax resolution specialist. Being audited, paying past taxes, dealing with tax and wage garnishments, bank levies by the IRS for delinquent tax payments, or any other obligation owed to the government are examples of these. Another reason could be that you’re in a disagreement with the IRS and want someone on your side who knows and understands tax law to help you reach the best outcome possible.
Tax resolution is the process of resolving tax issues with the appropriate authorities and developing and implementing appropriate solutions. The definition of tax resolution, which is often mistaken with ‘’tax relief’’ is the actual practice of resolving individual tax concerns. A case can take anywhere from several months to several years, depending on the severity of your unpaid taxes and the amount of work required to get a resolution. Tax resolution services typically cost between $3,500 and $4,500. Fees for tax settlement will be greater for a business, such as an LLC, partnership, C-corporation, or S-corporation. This is particularly true for companies who file 940s or 941s. fees for difficult tax resolution situations could be as high as $7,000.
How much do tax resolution services cost?
While not all tax resolution services providers are the same, it is usual practice to have some form of flat rate prices for services, which will be stated upfront with no surprises.
How much does the IRS generally accept as a settlement?
Every year, the internal revenue services approve a large number of offers in compromise with taxpayers who owe back taxes. In essence, the IRS reduces a taxpayer’s tax obligation owing in exchange for a lump-sum payment. In 2020, the IRs approved an average offer in a compromise of $16, 176.
What does it mean to be a tax resolution specialist?
A tax resolution specialist is a financial or legal expert who assists individuals and corporations in resolving their tax issues. These tax professionals are well-versed in IRS tools such as offers in compromise, payment arrangements, and penalty abatement.
Will you be able to represent me in front of the IRS if I am audited?
Any licensed tax resolution specialist is allowed to represent you during an IRS audit and can assist you in obtaining the most favorable settlement for your tax issues.