What Tax Relief Costs
Rates and standards last checked against IRS.gov: November 6, 2026
Some IRS relief costs little or nothing if you set it up yourself. This guide lists the IRS's own fees, explains how private firms charge, and shows where to get free help.
Quick answer
How much does tax relief cost?
IRS payment plans cost $0 to $178 to set up, and an Offer in Compromise has a $205 application fee. Private firms set their own fees, so get the total in writing before you pay.
Who this applies to: Anyone who owes the IRS and is deciding whether to handle it themselves or hire help.
What can change this answer
- Applying online is cheapest; direct debit plans cost less.
- Low-income taxpayers pay reduced IRS fees or none.
- CPAs, enrolled agents and attorneys generally can't charge contingent fees for collection work.
Recommended next step
Check your balance in your IRS online account and see whether you can apply for a payment plan yourself.
Reviewed by Joseph Lancaster, 13+ years in tax resolution.
Key facts
| Item | Fact | Source |
|---|---|---|
| Short-term IRS plan (180 days or less) | $0 setup fee | IRS: Payment plans |
| Long-term plan, direct debit | $29 online, $107 by phone or mail | IRS: Payment plans |
| Long-term plan, other payment | $69 online, $178 by phone or mail | IRS: Payment plans |
| Low-income setup fee | Waived with direct debit; otherwise $43, may be reimbursed | IRS: Payment plans |
| Offer in Compromise application fee | $205 (waived for low income) | IRS: Form 656 Booklet |
| Contingent fees for most IRS matters | Not allowed for CPAs, enrolled agents and attorneys | 31 CFR § 10.27 (Circular 230) |
Compiled November 10, 2026 from the linked primary sources.
What does the IRS charge?
The IRS charges setup fees for long-term payment plans and an application fee for offers:
- Short-term payment plan (180 days or less): $0 setup fee
- Long-term plan with direct debit: $29 online, $107 by phone, mail or in person
- Long-term plan with other payments: $69 online, $178 by phone, mail or in person
- Changing an existing plan: $6 online, $89 by phone or mail ($0 for direct debit plans)
- Offer in Compromise: $205 application fee plus an initial payment
Penalties and interest keep adding up until the balance is paid, whichever option you choose. See installment agreements and the Offer in Compromise guide for how each one works.
Low-income fee relief
Source: IRS: Payment plans
How do tax relief firms charge?
Private firms set their own prices, and they vary widely. Many charge a flat fee for a defined service, such as setting up a payment plan or preparing an offer. Some charge an upfront investigation fee before quoting the rest. Our company profiles collect sourced facts about individual firms.
Rules on contingent fees
Source: 31 CFR § 10.27 (Circular 230)
Can I do it myself?
Often, yes. Many individuals who owe $50,000 or less can apply for a long-term payment plan online. You can ask for penalty relief by phone, and apply for an Offer in Compromise or Currently Not Collectible status without a representative. Help is most useful when your case is complicated: unfiled years, a business debt, an audit, or an active levy.
Where can I get free help?
Low Income Taxpayer Clinics represent eligible taxpayers before the IRS and in court for free or a small fee. You generally need income below a set threshold, and the amount in dispute is usually under $50,000. Clinics are partly funded by the IRS but independent of it.
Questions to ask before you pay anyone
Get the answers in writing. A firm that won't put its fee in writing is a firm to skip.
- What is the total fee, and what exactly does it cover?
- How much is due before any work starts, and when is the rest due?
- What is the refund policy if you can't get me a result?
- Who will work my case, and are they a CPA, enrolled agent or attorney?
- Do I qualify for something I could set up myself, like an online payment plan?
- Does the fee include filing my missing returns, or is that extra?
Frequently asked questions
How much does the IRS charge for a payment plan?
A short-term plan (paying within 180 days) has no setup fee. A long-term plan costs $29 online with direct debit, or $69 online with other payment methods. Applying by phone, mail or in person costs more: $107 or $178. Low-income taxpayers pay reduced fees or none.
How much does it cost to apply for an Offer in Compromise?
The IRS charges a $205 application fee, plus an initial payment with the offer. Low-income taxpayers who qualify don't pay the fee or the initial payment.
Can I set up IRS relief myself without paying a company?
Often, yes. Many individuals who owe $50,000 or less can set up a long-term payment plan online themselves. You can also ask for penalty relief and apply for an Offer in Compromise without a representative.
Can a tax professional charge a percentage of what they save me?
For most IRS matters, no. Under Circular 230, CPAs, enrolled agents and attorneys generally can't charge contingent fees, which include fees based on a percentage of taxes saved. The limited exceptions cover audits of original returns, interest and penalty refund claims, and court cases.
Is there free help for tax debt?
Yes. Low Income Taxpayer Clinics represent eligible taxpayers before the IRS for free or a small fee, usually when the amount in dispute is under $50,000.
Why do some tax relief firms charge a large fee upfront?
Some firms bill an investigation or retainer fee before reviewing your case. Ask what it covers and what the refund policy is before you pay, and be wary of large fees charged before any work is done.
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