Written by Gregory Segal, Tax Attorney & Co-Founder of Wiztax
Gregory Segal is a tax attorney with over 25 years of experience resolving IRS debt for individuals and businesses. He has taught tax law at the law school level and co-founded Wiztax to make professional tax resolution affordable and accessible. Gregory and the Wiztax team have helped over 2,000 clients resolve their IRS tax problems.
Last Updated: April 2026
Tax relief services at other companies typically cost between $3,500 and over $10,000, with the average case running $4,500.
Wiztax never charges for investigations or consultations and typically costs half of what other tax relief companies charge.
This guide breaks down what you can expect to pay, what your IRS resolution options are, and how to avoid overpaying for help you may not need.
If you owe back taxes to the IRS, you have several resolution options — each with different costs and eligibility requirements. Understanding both the IRS fees and the cost of professional tax relief services will help you make the best decision for your situation.
What This Guide Covers
- Tax Relief Options: Offer in Compromise, Installment Agreements, and Currently Not Collectible status
- IRS Application Fees: What the IRS charges for each resolution program
- What Tax Relief Companies Charge: Industry pricing breakdown by service type
- How Wiztax Is Different: Transparent pricing with no hidden fees
- Real Cost Examples: What Wiztax clients actually paid
- Red Flags to Watch For: How to avoid tax relief scams
- Do You Even Need a Tax Relief Company? When to hire help vs. resolve it yourself
- Wiztax vs. Competitors: Head-to-head pricing comparison with Optima, TaxRise, and Anthem
- FAQs: Answers to the most common tax relief cost questions
What Are Your Tax Relief Options?
If you owe the IRS money you cannot pay in full, there are three primary resolution programs available. Each has different eligibility criteria, application costs, and potential outcomes.
1. Offer in Compromise (OIC)
An Offer in Compromise allows you to settle your IRS tax debt for less than the full amount you owe. The IRS considers this option when it determines that collecting the full debt is unlikely or would cause financial hardship.
Eligibility factors the IRS considers:
- Your ability to pay based on current income
- Total asset equity (what you own minus what you owe)
- Monthly living expenses
- Your future earning potential
Important: You must be current on all tax filings and estimated payments to qualify. The IRS will reject OIC applications from taxpayers with unfiled returns. This program is also not available for the current tax year.
IRS Application Fee: $205 (non-refundable). Low-income taxpayers may request a fee waiver through the Low Income Certification process.
Payment Options:
- Lump Sum: Pay 20% of your offer amount when you submit, then the remainder within 5 months of acceptance.
- Periodic Payment: First payment due with your application, then monthly payments over 6 to 24 months.
2. Installment Agreements (IRS Payment Plans)
An Installment Agreement lets you pay your tax debt in manageable monthly payments over time. The IRS offers several types depending on how much you owe.
Guaranteed Installment Agreement (owe less than $10,000)
The IRS automatically approves this if you meet all of the following criteria:
- No late payments or late filings in the last five years (excluding extensions)
- All tax returns filed
- Agree to file and pay all future taxes on time
- Agree to let the IRS apply future refunds to your balance
To calculate your monthly payments, add total taxes, penalties, and interest, then divide by 36. You can make additional payments to reduce the debt faster.
Streamlined Installment Agreement (owe $10,000–$50,000)
Allows repayment over up to 72 monthly payments. The IRS will not require detailed financial documentation such as bank statements for this type of agreement.
Extended Streamlined Installment Agreement (owe $50,000–$100,000)
Allows repayment over up to 84 monthly payments.
Non-Streamlined Installment Agreement (owe more than $100,000 or need custom terms)
The IRS reviews your income, expenses, and assets to determine your monthly disposable income. That amount becomes your required monthly payment. You may have until your Collection Statute Expiration Date (CSED) or 72 months, whichever comes first, to pay in full.
Installment Agreement IRS Setup Fees
| Plan Type | Online Application | Phone / Mail / In-Person |
|---|---|---|
| Direct Debit (auto-pay) | $31 | $107 |
| All other payment methods | $130 | $225 |
| Low-income (Direct Debit) | Fee waived | Fee waived |
| Low-income (other methods) | $43 (may be reimbursed) | $43 (may be reimbursed) |
| Short-term plan (180 days or less) | No setup fee | No setup fee |
Source: IRS.gov — Apply Online for a Payment Plan. Fees current as of 2026.
3. Currently Not Collectible (CNC) Status
If the IRS determines that you cannot afford to pay any amount toward your tax debt, your account may be placed in Currently Not Collectible status. This temporarily halts all collection activity — no more phone calls, letters, levies, or wage garnishments.
Your debt does not go away under CNC status. Interest and penalties continue to accrue. However, the IRS will not actively pursue collection while the status is in effect. The IRS periodically reviews CNC accounts to determine if your financial situation has changed.
IRS Fee: There is no fee to apply for Currently Not Collectible status.
How Much Do Tax Relief Companies Charge?
The average tax relief case at other companies costs between $3,500 and $5,500. However, costs vary widely depending on the complexity of your case, how much you owe, and which company you hire.
Most tax relief companies use a two-phase fee structure: an initial investigation fee (sometimes called a “discovery” or “consultation” fee), followed by a separate resolution fee for the actual casework.
Average Tax Relief Costs by Service Type
| Service | Industry Average | Wiztax |
|---|---|---|
| Initial Investigation / Consultation | $350 – $1,500 | Free — always |
| Complete Tax Resolution: Offer in Compromise (OIC), Currently Not Collectible (CNC), Installment Agreement | $3,500 – $5,500 | Typically half |
| Interfacing with IRS Revenue Officer, Collections Specialist | Additional $5,000+ | Never an additional charge |
| Unfiled Tax Return Preparation | $500 – $2,000 per return | $250 average |
Note: Industry averages compiled from ConsumerAffairs, Bench Accounting, LendEDU, CNBC Select, and TaxCure as of March 2026. Actual costs depend on case complexity and amount owed.
How Tax Relief Companies Structure Their Fees
Tax relief companies use different pricing models, and understanding these structures will help you compare options and avoid surprises.
- Fixed fee: A lump-sum price paid upfront. This frequently leads to additional charges and surprises as the case progresses. (Note: this is different from Wiztax’s flat monthly pricing, which is all-inclusive with no add-on fees – see below).
- Hourly rates: Some firms bill $200 to $1,000 per hour. This can lead to unpredictable costs, especially for complex cases that take months to resolve.
- Percentage of debt: Some companies charge 10% to 15% of your total tax debt. If you owe $50,000, that means $5,000 to $7,500 in fees — regardless of how much work is actually required.
- Monthly retainer: A flat monthly fee that is inclusive of all services. No additional fees at any time. This is the structure that Wiztax uses. Before starting, you will know exactly what to expect.
The Wiztax Difference: Affordable, Transparent Tax Relief
Wiztax was built on the belief that professional tax resolution should not cost thousands of dollars upfront before any work begins.
Our co-founder, Gregory Segal, is a tax attorney with over 25 years of experience who has taught tax law at the law school level. He founded Wiztax to make tax relief affordable and accessible for everyone.
Here is what makes Wiztax different:
- No investigation fees — ever. Most companies charge $300 to $1,500 just to look at your case. Wiztax never charges for consultations or investigations.
- Around 50% less than competitors. Our flat monthly pricing is simple, transparent, and all-inclusive — and consistently comes in at about half of what other tax relief companies charge for the same services.
- No percentage-based billing. Wiztax does not charge a percentage of your tax debt. Your fee is based on the work required, not on how much you owe.
- No hourly billing. You will never receive an unexpected invoice from Wiztax. Our flat fee covers all services.
- No hidden fees. Our monthly fees are inclusive of all tax resolution services. There are no additional charges of any kind.
- Free online evaluation. Start with Wiztax’s free online tax relief evaluation to understand your options before committing to anything.
Wiztax has helped over 2,000 clients resolve their IRS tax problems. We hold an A+ rating with the Better Business Bureau and maintain 5-star reviews on Google. Check out our customer testimonials to hear from clients who have been through the process.
See your options — Start for Free and get your personalized evaluation at no cost.
Real Cost Examples: What Wiztax Clients Actually Paid
Numbers on a comparison table are one thing. Real outcomes are another. Here are actual results from Wiztax clients.
Brandon N. — Over $42,000 in Tax Debt Dismissed
Brandon came to Wiztax facing a large IRS tax debt. After reviewing his financial situation, our team determined he qualified for hardship status and successfully had his tax burden dismissed — saving him over $42,000.
Resolution type: Currently Not Collectible (hardship status)
“Wiztax got my tax burden dismissed due to hardship and saved me over $42,000! Greg the tax attorney and his team were amazing. I would highly recommend Wiztax — they won’t let you down.” — Brandon N.
Jamie L. — Truck Driver, $25,000+ Debt Settled for Under $1,000
Jamie is a truck driver who owed more than $25,000 to the IRS. Another tax relief company quoted him $6,000 just in fees. Wiztax took his case at a fraction of that cost, submitted an Offer in Compromise on his behalf, and settled his entire IRS debt for less than $1,000.
Resolution type: Offer in Compromise
Savings: Over $24,000 — and thousands less in fees than the competitor’s quote
Lynda L. — $26,000 in Tax Debt Settled for $1,200
Lynda owed $26,000 to the IRS. Wiztax submitted an Offer in Compromise on her behalf and settled the full debt for just $1,200 — a savings of nearly $25,000. Her case was resolved in approximately 6 months from start to finish.
Resolution type: Offer in Compromise
Timeline: 6 months
Savings: Nearly $25,000
Every case is different, and results depend on your specific financial situation and are not a guarantee of future results. Want to see if you qualify? Start with a free evaluation.
Red Flags: How to Avoid Tax Relief Scams
The Federal Trade Commission (FTC) has received numerous complaints about misleading tax relief companies. Because taxpayers dealing with IRS debt are often stressed and fearful, the industry has a higher-than-average number of bad actors. Protect yourself by watching for these warning signs.
- “We’ll settle your debt for pennies on the dollar.” No company can guarantee a specific IRS outcome before reviewing your complete financial situation. The IRS uses strict qualification formulas for every resolution program.
- Large upfront fees before any work begins. Reputable companies should be willing to evaluate your case before collecting thousands of dollars. Be especially cautious of firms that require full payment before starting.
- No clear explanation of services. If a company cannot tell you specifically what they will do for you, and how much it will cost, before you sign a contract — walk away.
- Pressure to sign immediately. Legitimate tax professionals will give you time to make a decision. High-pressure sales tactics are a significant red flag.
- No licensed professionals on staff. Verify that the company employs enrolled agents, CPAs, or tax attorneys who are authorized to represent you before the IRS.
You can verify a company’s standing through the Better Business Bureau and report suspicious companies to the IRS Office of Professional Responsibility using Form 14157.
Do You Even Need a Tax Relief Company?
This is an important question, and an honest tax professional will tell you that not everyone needs to hire a company. Here is a straightforward breakdown.
You may be able to handle it yourself if:
- You owe less than $10,000 and qualify for a Guaranteed Installment Agreement
- Your situation is straightforward (one year of unpaid taxes, no complications)
- You are comfortable navigating IRS.gov and completing the necessary forms
- You are requesting a simple short-term payment extension (180 days or less)
Consider professional help if:
- You owe more than $10,000 and the complexity of your case is beyond a simple payment plan
- You have multiple years of unfiled tax returns
- You are facing active IRS collection actions (levies, liens, wage garnishments)
- You believe you qualify for an Offer in Compromise and need help with the application
- You have business tax issues or potential penalties from payroll taxes
- You want a professional to handle all IRS communication on your behalf
If you are unsure whether you need professional help, Wiztax offers a free online evaluation that can help you understand your situation and options — with no cost and no obligation.
How Does Wiztax Compare to Other Tax Relief Companies?
Most tax relief companies follow a similar process: a free initial phone call, a paid investigation phase, and then a separate resolution fee. Here is how Wiztax stacks up against the industry on key factors.
| Feature | Industry Typical | Wiztax |
|---|---|---|
| Investigation Fee | $50 – $1,500 | $0 — always free |
| Fee Structure | % of debt, hourly, or fixed | Simple flat monthly fee |
| Minimum Debt Required | $10,000 – $25,000 | $10,000+ (to ensure meaningful savings) |
| Hidden Fees | Common (filing fees, transcripts, appeals) | None — all-inclusive |
| Total Resolution Cost | $3,500 – $7,500 average | Typically half |
| Credentials | Varies by company | Tax attorney with 25+ years |
| BBB Rating | Varies (A+ to F) | A+ |
Wiztax vs. Optima, TaxRise, Community Tax, and Anthem: Pricing Compared
If you are comparing tax relief companies, pricing is one of the most important factors. Below is a side-by-side breakdown of what the most well-known tax relief companies charge, based on publicly available data from the BBB, ConsumerAffairs, LendEDU, CNBC Select, Money.com, and Finder as of March 2026.
| Feature | Wiztax | Optima Tax Relief | TaxRise | Anthem Tax Services |
|---|---|---|---|---|
| Investigation Fee | $0 — always free | $495 | $375 – $500 | $250 – $300 |
| Typical Total Resolution Cost | ~50% less than industry average | $3,000 – $15,000 (avg. $5,000 – $8,000) | Not disclosed; 15% of debt cited in some reviews | $2,500 – $7,000 |
| Fee Structure | Flat monthly, all-inclusive | Upfront lump sum after investigation | Percentage of debt or flat fee; not disclosed upfront | Flat fee; varies |
| Minimum Debt | $10,000 | $10,000 | $5,000 – $10,000 | $10,000 |
| Hidden Fees | None — all-inclusive | Reported in reviews; pricing not transparent | Not disclosed until after investigation | Add-on charges reported in BBB complaints |
| Lead Professional | Tax attorney (25+ years) | Unknown. Could be case manager, CPA/EA, and/or attorneys | Unknown. Could be case manager, CPA/EA, and/or attorneys | Case managers, attorneys as needed |
| Money-Back Guarantee | Free evaluation; no risk to start | 15-day refund on investigation fee | Investigation fee non-refundable | Investigation fee non-refundable |
Sources: BBB business profiles, ConsumerAffairs reviews, LendEDU, CNBC Select, Money.com, and Finder.com. Pricing and ratings current as of March 2026. Competitor pricing may vary by case complexity.
Is Wiztax Cheaper Than Optima Tax Relief?
Yes. Optima charges a $495 investigation fee before resolution work begins, and total fees commonly range from $3,000 to $15,000 based on third-party reviews. Some clients have reported paying $8,000 or more. Wiztax charges no investigation fee, uses flat monthly pricing, and typically costs around 50% less for comparable services.
How Does Wiztax Compare to TaxRise on Cost?
TaxRise charges a $375 to $500 investigation fee, and some reviews cite resolution fees around 15% of the total tax debt — meaning a $30,000 debt could cost $4,500 or more in fees alone. TaxRise does not disclose full pricing until after you pay the investigation fee. Wiztax never charges for investigations, does not use percentage-based billing, and provides clear pricing before you commit.
Is Wiztax Better Than Anthem Tax Services?
Anthem’s investigation fee starts at $250 to $300, with resolution fees ranging from $2,500 to $7,000, according to third-party sources. Anthem advertises a money-back guarantee, though BBB complaints indicate some clients had difficulty obtaining refunds. Wiztax eliminates the investigation fee entirely, and your case is led by a tax attorney with over 25 years of experience — not assigned to case managers with attorneys involved only as needed.
Frequently Asked Questions About Tax Relief Costs
Q: How much does tax relief cost on average?
The average tax relief case costs between $3,500 and $5,500, according to multiple industry sources. Wiztax consistently comes in at around 50% less.
Q: Do tax relief companies charge upfront fees?
Most tax relief companies charge an upfront investigation fee of $350 to $1,500 before any resolution work begins.
Wiztax never charges for investigations or consultations. Your free evaluation helps us understand your situation and if we can’t help you, you pay nothing.
Q: Is tax relief worth the cost?
It depends on the complexity of your situation. If you owe a significant amount, have unfiled returns, or face active IRS collection actions, professional representation can often secure better outcomes than going it alone.
The key is to compare the company’s fees to the potential savings.
Q: What is the average cost of an Offer in Compromise?
Professional help with an Offer in Compromise typically costs $3,500 to $7,500 at most tax relief companies, plus the IRS’s $205 application fee.
Wiztax handles OIC applications at a fraction of the industry cost, and your case is handled by an experienced tax attorney.
Q: How much does an IRS installment agreement cost to set up?
The IRS charges setup fees ranging from $0 (for short-term plans) to $225 depending on the type of plan and how you apply.
Online applications with direct debit cost the least at $31. On top of the IRS fee, tax relief companies typically charge $3,500+ for their assistance in setting up the agreement.
Q: Can I negotiate with the IRS myself instead of hiring a company?
Yes. The IRS offers several self-service resolution options, including online installment agreement applications and the Offer in Compromise pre-qualifier tool.
For straightforward cases (especially debts under $10,000), handling it yourself may be a reasonable option. For complex situations involving multiple years, large balances, or active collection actions, professional help is usually worth the investment.
Q: What is the cheapest way to resolve IRS tax debt?
The least expensive route is to work directly with the IRS using their free online tools. The IRS Taxpayer Advocate Service can also help at no cost.
If you want professional help, Wiztax offers some of the lowest fees in the industry — no investigation fee, no percentage-based billing, and flat monthly pricing that runs about 50% less than what most competitors charge.
Q: How long does tax relief take?
Most of our clients achieve final resolution in about 6-8 months on average. Some cases are faster, some take longer, depending on complexity.
Q: What if you can’t help me?
Then we’ll tell you honestly and point you toward resources that can. We’d rather tell you the truth than take your money when we can’t deliver results.
Q: How is this different from other tax relief companies?
Simple: We don’t charge for consultations, you work directly with a licensed attorney, and our pricing is typically 50% less than competitors. We built this business to be different.
Ready to Resolve Your IRS Tax Debt?
Wiztax has helped over 2,000 clients resolve their IRS tax problems — with transparent pricing, no investigation fees, and costs that average around 50% less than other tax relief companies.
Our co-founder is a tax attorney with over 25 years of experience, and every client receives personalized attention from our experienced team.
Start for free and let us show you how we can help. Your free evaluation takes just a few minutes — and there is no cost or obligation.