Tax Relief with Logan Allec, CPA

How Much Do Tax Relief Companies Charge? My Take on a 12% Fee

• Logan Allec

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0:00 | 6:31

How much do tax relief companies charge, and what should their fee include? I look at a reported quote of 12% of a taxpayer's debt and a claim that 14% is the “industry standard.” The focus is how to compare tax relief fees and contract terms before you pay.

Owe the IRS or your state at least $10,000 in back taxes? Book a FREE consultation with my team at Choice Tax Relief. Call 866-8000-TAX (866-8000-829) OR book here:
https://choicetaxrelief.com/free-tax-...

I'm Logan Allec, CPA and owner of Choice Tax Relief. I respond to a taxpayer's reported quote for a partial-payment installment agreement (PPIA) and explain the questions I would ask before signing a tax-resolution fee agreement.

We cover:

  • Flat, hourly, and percentage-based pricing

  • How the work involved and size of the tax debt can affect a quote

  • Separate investigation, tax preparation, and resolution fees

  • Whether appeals, fallback options, and additional work are included

  • Why the written contract should match what you were told


CHAPTERS
00:00 A tax relief firm quoted 12% of the debt
00:11 What the proposed fee includes
01:21 The claimed 14% “industry standard”
01:43 Flat fees versus percentage-based fees
02:16 Debt size and case complexity
02:45 Investigation, tax preparation, and resolution fees
03:29 Why PPIA negotiations can be complex
04:05 What happens if the PPIA is rejected?
04:42 Get the scope and extra fees in writing
05:17 Compare independent quotes
05:43 Watch for costly upsells
06:12 Get a free tax relief consultation

IMPORTANT CLARIFICATIONS
The 12% quote and 14% claim come from the taxpayer's account discussed in the video. The 14% figure is not a verified industry benchmark.

My preference for flat or hourly billing is a pricing opinion. A fee calculated from the starting debt balance is not automatically prohibited; the contract terms and applicable professional rules matter.
31 CFR §10.27: https://www.ecfr.gov/current/title-31...

For campus/ACS PPIAs, IRS guidance generally requires managerial approval above $25,000 in aggregate assessed balance; at $25,000 or less, it generally does not. Other circumstances can also require review.
IRS guidance: https://www.irs.gov/irm/part5/irm_05-...

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FTC guidance on evaluating tax-relief companies:
https://consumer.ftc.gov/articles/tax...

General educational information, not individualized tax or legal advice. Fees, available options, and outcomes depend on your circumstances. No tax-resolution result is guaranteed.

#TaxRelief #TaxReliefFees #TaxResolution