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Not sure how to price your Tax Resolution services? We've rounded up a few pricing models to get you started.

There is no universal or exact way to price your Tax Resolution services. However, if you’re looking for guidelines, we’ve rounded up some common ways that other Tax Resolution practices are currently pricing their services.

Offering an initial consultation

Building trust with prospective clients is critical, and to do so, many practitioners perform an initial consultation before a full engagement, so the prospective client can see the value of the practitioner’s services. This initial consultation is designed to understand the client’s personal circumstances and tax situation. Often the outcome of the initial consultation is a recommendation of how to move forward with the client’s case. The consultation provides a tremendous opportunity for you to show that you know your stuff and have an urgency to complete the case.

Commonly, tax practitioners offer a free consultation. The client doesn’t have to pay anything if they don’t qualify for Tax Resolution or if their case is not likely to be successful. Offering a free consultation could be a good way of garnering business and building trust.  A client may be more likely to consider your practice for Tax Resolution if they don’t have to pay to have their case evaluated.

Offering a free consultation could be a good way of garnering business and building trust. Click To Tweet

On the other hand, many practitioners provide an initial consultation but for a fee.  For example, Michael Rozbruch, a leading Tax Resolution expert, advocates for always getting paid an upfront fee before starting any work, even a consultation. If you choose to charge an initial fee for looking over a case, Rozbruch suggests charging $1,250 to $1,500.

Conversely, Kurt Avarell, the CEO and founder of CanopyTax.com, practiced as a Tax Resolution expert and his company charged an initial fee of $250 to $350 to get started, considerably less than that of Rozbruch.

At the end of the day, whether you charge $250 or $1500 (or even offer it free) for the initial consultation, the goal is to learn the fact of the case, understand potential outcome resolutions, and earn the potential client’s trust — anyway you price it, the initial consultation will help you move your relationship forward.

How much do you currently charge for an initial consultation?

 

Offering flat fees vs. variable prices

Similar to the price range for initial consultations discussed above, there is also a wide range of ways to price Tax Resolution services as part of a full-service engagement.

Some people prefer to offer flat fees to complete all the necessary work for a particular outcome. No matter what services are used, the client pays one fee to cover whichever Tax Resolution services end up being needed.

There are certainly some amazing benefits of using flat fees. If you complete the services at a faster-than-expected pace, your effective hourly rate goes up! In addition, your client will get predictability in pricing, which they’ll love. On the other hand, flat fees can become very expensive to you if you end up spending more time than expected on the engagement. The initial consultation suggested above can help mitigate this risk, however, since you would know before pricing your services what the most likely outcome is for your client.

Other tax professionals charge hourly for their services. In the legal and accounting industries, hourly billings are still very popular because they assure that professionals get paid for the value of their work. However, this comes at the cost of predictability for the client. Larger clients, especially big businesses, may not care about predictability and lower cost. They’re just looking for the best service at the best price. Small business clients or individuals might be more sensitive to the unpredictability of hourly rates and prefer a flat fee.

Here are some examples for reference of these different types of pricing:

Pricing with flat fees

Flat Fee Tax Service is a tax practice in San Diego that prices Tax Resolution services for a flat fee. Their pricing is as follows:

Pricing based on services

Fresh Start Tax & Accounting is a tax practice located in Maryland. Their prices vary depending on the service. Below is how they price some of their services. 

Pricing based on liability

Certified Tax Solutions is a practice located in Utah whose prices are based on the client’s liability. There prices are as follows:

Pricing based on both services and liability

Rozbruch’s suggestion for pricing your services is based on both services and liability. Rozbruch says that his average engagement while doing Tax Resolution was worth about $5,000, or approximately $300 to $400 an hour. Here is what he suggests for pricing:

Other options

These, of course, are not your only options for pricing your own services. Other practices charge prices that vary from those that have been mentioned.

Finding a pricing system for your Tax Resolution services can be difficult at first but using other established practices as references for where to start can make the process easier.

 

Now that you’ve decided how much to charge for your services, the next step is to find clients! If you’re looking for ideas, here are 4 easy ways to get more tax resolution clients that you can use today.