When you’re staring down a tax bill that you can’t pay, or you’ve received a notice from the IRS, it’s not just your wallet that suffers; it’s your time, your mental focus, and your long-term financial health.
Tax resolution services offer a legal, structured way to address these issues, but understanding their costs isn’t as simple as checking a price tag. You need to understand what you’re buying: specialized knowledge, strategic negotiation, procedural defense, and ultimately, your peace of mind.
This article walks you through exactly how much tax resolution services cost, why the pricing varies, and how a Houston-based CPA firm like Terence J Romney CPA builds long-term solutions that save you far more than they cost.
What Are Tax Resolution Services?
“Tax resolution” is often misunderstood. It’s not just filing a form or calling the IRS. It is a strategic financial intervention rooted in tax law, IRS procedures, and audit risk management.
It includes services such as:
- IRS account diagnosis and forensic review of your tax records
- Negotiation of back tax settlements (Installment Agreements or Offer in Compromise)
- Filing of back tax returns and corrections
- Releasing or preventing liens, levies, or wage garnishments
- Audit representation and appeals
- Abatement of penalties and interest
- Compliance structuring for future protection
This is not legal theory, it’s tactical execution. Tax resolution professionals act as your shield and strategist against one of the most powerful institutions in America: the IRS.
How Much Do Tax Resolution Services Cost in Houston (2025)?
The cost of tax resolution services isn’t static. It varies based on your financial profile, the nature of your tax issue, the years involved, and the required scope of work. Below is a realistic range based on current CPA standards in the Houston market.
| Resolution Service | Estimated Cost Range |
| Initial Case Evaluation (IRS Transcripts & Analysis) | $250 – $500 (flat fee) |
| Filing Back Tax Returns | $200 – $1,200 per year |
| Simple Installment Agreement | $750 – $1,500 |
| Complex Installment Agreement (financial disclosure required) | $1,500 – $2,500 |
| Offer in Compromise (OIC) | $3,000 – $6,500+ |
| Penalty Abatement (reasonable cause argument) | $750 – $2,000 |
| IRS Audit Representation | $2,500 – $10,000+ |
| Wage Garnishment or Levy Release | $1,000 – $3,000 |
| Full-Scope Resolution Case | $4,000 – $15,000+ |
These are professional-grade, Houston-specific figures based on current market trends. Lower prices typically reflect cookie-cutter, high-volume shops, not tailored CPA guidance.
The Core Pricing Drivers: What Actually Impacts the Cost?
1. Case Complexity & Financial Depth
Is this a one-year issue involving a late return or a multi-year liability across income streams, business filings, and payroll taxes? The more variables, the more professional hours and risk management are required.
For instance:
- A single W-2 worker with an IRS letter may only need 3–4 hours of representation.
- A self-employed contractor with 5 years of unfiled returns, improper 1099s, and a $78,000 tax debt will require full forensic analysis, strategic tax planning, negotiation, and legal defense, often 40+ hours of work.
2. IRS Status of Your Case
The stage of IRS involvement drastically affects cost:
- Soft Notice (CP14, CP501): Lower-cost preventive action
- Wage Garnishment / Bank Levy: Requires urgent, high-pressure negotiation
- Revenue Officer Assigned / Tax Lien Filed: Advanced resolution strategy necessary
If your case has escalated, your representation must be not only reactive but surgical and time-bound.
Also Read: Best Tax Services In Houston TX
3. Amount of Tax Debt
The IRS categorizes tax debts over $50,000 as high-risk. This triggers additional documentation (Form 433-A/OIC), financial scrutiny, and often a Revenue Officer assignment. Cases in this bracket demand an elevated strategy and risk handling.
4. Business vs. Individual Taxpayers
Tax resolution for businesses (especially S Corps, partnerships, or sole proprietors) involves:
- Payroll tax compliance
- Employment tax negotiations (Form 941 liabilities)
- Sales/use tax if applicable (Texas Comptroller involvement)
- Reconstructing financial statements when no books are available
This goes far beyond individual tax filing errors.
What Are You Actually Paying For?
When you pay for tax resolution, you’re not paying for forms—you’re paying for:
● Expertise in the Internal Revenue Manual (IRM)
Only experienced CPAs and Enrolled Agents know how to navigate and apply the IRS’s own rulebook, what they can and cannot do, and what procedural rights protect you.
● Financial Defense and Forensic Accounting
Unfiled tax years often require full reconstruction of income, deductions, and cash flow. A skilled CPA doesn’t guess; he/she documents, projects, and prepares a defensible case file.
● Negotiation Power with the IRS
This is not like calling your credit card company. IRS negotiation requires:
- Clean financial presentation
- Deep understanding of “reasonable collection potential”
- Legal framing under the Internal Revenue Code
- Artful communication (often via Power of Attorney)
● Protection of Assets and Rights
Done wrong, you may lose access to bank accounts, suffer asset liens, or damage your business reputation. Done right, you preserve assets while building a path forward.
Flat Fees vs. Hourly Billing
Top CPA firms often use flat-fee models for resolution. Why?
- Budget predictability: You know the full cost up front.
- No surprise invoices: You pay for a result, not a clock.
- Strategic alignment: The firm is incentivized to resolve your case efficiently.
Hourly billing ($200–$500/hour) still applies for open-ended audits, complex IRS appeals, or multi-year financial reconstruction, but it should come with itemized estimates and regular updates.
Houston-Specific Considerations
Operating in Houston, TX, we also see specific regional factors that affect both case complexity and price:
1. No State Income Tax, but State Business Tax Risk
While Texas doesn’t levy income tax, it enforces strict franchise tax and sales/use tax on businesses. The Texas Comptroller aggressively pursues noncompliance, particularly for service-based companies and contractors.
2. High Volume of Independent Contractors
Houston’s booming economy includes oil & gas consultants, medical professionals, and freelancers, many of whom receive 1099s and underestimate quarterly tax payments. This creates frequent underreporting or underpayment cases.
3. IRS Field Office Activity
The IRS Houston Field Office is known for a high volume of audits and collections activity. Local representation matters here. A national tax mill won’t understand the nuances of your Revenue Officer’s process or the expectations of local compliance agents.
Watch Out for Predatory Firms
Many national “tax resolution firms” advertise flat fees under $1,000 and claim they can “settle your debt for pennies.”
Here’s the truth:
- Most of these firms sell your case to an outsourced contractor.
- They charge a low fee to gain access, then upsell once you’re committed.
- Their settlement rate is extremely low, and service is often unlicensed.
Stick with licensed, local professionals with a clear track record and transparent billing structure.
Final Word: Is It Worth It?
If you owe $25,000, $50,000, or even more, and you’re overwhelmed by IRS letters or liens, paying $4,000–$10,000 to fix the issue is not just reasonable, it’s smart.
What you’re buying is not just resolution; you’re buying:
- Asset protection
- Credit preservation
- Audit defense
- Compliance restoration
- Long-term peace of mind
And with a seasoned CPA like Terence J Romney, you’re getting much more than form filing, you’re getting a strategic partner who stands between you and the IRS with calm, proven precision.
Start Your Resolution With a Trusted Houston CPA
You don’t need to navigate IRS pressure alone. If you’re in Houston or the surrounding areas and struggling with tax debt, unfiled returns, or IRS audits, contact Terence J Romney CPA today.
- Address: 6464 Savoy Dr Ste 470, Houston, TX 77036
- Phone: (713) 278-0023
- Email: tjromney@tjromneycpa.com
Let us restore your financial clarity, defend your rights, and resolve your tax issues, for good.