Methodology

SuperMoney's list of the most-recommended tax relief companies with the lowest fees is based on the qualitative recommendations of our community members and the quantitative recommendations of our ranking algorithms. We analyzed more than 70 tax relief firms to find the ones that charge the lowest fees. Additionally, we considered other important factors, such as accreditations, minimum debt requirements, tax relief services, customer recommendations, past complaints, and flexible payment options.

Common Questions on Tax Relief Companies and Fees

What fees do tax relief companies charge?

Tax relief companies can charge you in a variety of ways. For starters, they may charge you a set-up fee or a retainer to start working on your case. They may also charge you an hourly rate, a percentage of the total tax debt you owe, or a flat rate for their services.

How much does a tax relief company charge?

Most tax settlement companies charge an initial fee to investigate your case that costs from $200 to $500. The total cost for representing you before the IRS typically falls between $3,000 and $6,000. However, the cost varies depending on the complexity of the case and the size of the tax bill.

What is the average fee for tax relief companies?

The average fee for handling a tax relief case ranges from $3,000 to $4,000. However actual fees vary a lot depending on how many accounts you have, your total debt balance, and the company you choose.

Are the fees that tax relief companies charge worth it?

Tax relief companies generally require you have a minimum amount of debt (e.g., $10,000) for them to take your case. The value that tax relief companies offer you in exchange for your payment is the prospect of being able to reduce or eliminate the debts you owe, remove liens, and stop IRS collection efforts. Legitimate firms may be able to settle complicated issues, and reduce the amount you owe, which could justify the fees. Another thing to consider when determining the value of hiring a firm is that although you can negotiate directly with the IRS, it takes a lot of time. Just getting an IRS agent on the phone can involve long wating periods. However, the return on investment varies case by case and by the tax relief firm you choose.

Do you have to pay the entire fee to the tax relief company at once?

Whether or not you have to pay the entire fee to a tax relief company at one time depends on the company you choose. Each company has it's own policies. Some firms require you to pay the full amount upfront. Others may ask for part of the payment upfront and the rest over a series of monthly payments. And others may enable you to split the entire balance up into payments. You'll want to check the policy of the tax relief companies you consider to ensure the fees will fit into your budget. The best companies offer flexible payment options and work with each client's unique situation.