Pricing is one of the most challenging parts of running a tax resolution business. Many professionals undercharge because they fear losing clients, while others overcomplicate their pricing structure and confuse prospects.
Here’s the truth: If you want to attract serious clients and build a profitable practice, you need to price your services strategically and confidently.
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Understand the Value You Provide
Tax resolution isn’t tax prep. You’re not just filling out forms—you’re protecting your client’s finances, future, and peace of mind. When someone owes $20,000+ to the IRS, the value of proper representation is enormous. They’re not hiring you for time; they’re hiring you for peace of mind and results.
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Offer Flat Fees Where Possible
Clients like clarity. Flat fees make it easier for them to say yes and easier for you to manage your time. Structure flat fees around case types—e.g., Offer in Compromise, Installment Agreement, Penalty Abatement, etc. This also makes invoicing and collection more straightforward.
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Provide Package Pricing Your Services
Consider offering different service levels: basic compliance, representation-only, and full strategy packages. This gives clients options based on their situation and budget. It also helps you avoid scope creep, since each tier has defined boundaries.
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Don’t Compete on Price
There will always be someone cheaper. Compete on expertise, responsiveness, and results. Build trust and authority with prospects before they even reach out. Use content, webinars, and social proof to show your value before a pricing conversation even begins.
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Anchor Your Prices to Outcomes
Don’t price your service like a commodity. Re-frame your pricing in terms of results. For example, if a client is facing $50,000 in penalties and you can help settle it for $5,000, your $4,500 fee suddenly seems like a bargain.
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Avoid Hourly Billing (Whenever Possible)
Hourly billing penalizes efficiency and makes clients question your time. Project-based pricing communicates confidence and value. Only use hourly rates for unique, open-ended engagements—and make sure the client understands the estimate upfront. Hourly billing is best for audit/exam related cases as it is difficult to judge the scale of the audit.
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Always Use Engagement Letters
Pricing means nothing if it’s not formalized. Clear engagement letters that outline the scope, payment terms, and additional charges protect you and set expectations. This reduces pushback and ensures you’re paid on time.
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Revisit Your Prices Annually
Inflation, demand, and your expertise all change over time. Review your pricing for ALL services you provide annually and raise your rates when your value increases. Even a 10–15% bump can make a major difference to your bottom line over time.
Final Thoughts
Confident pricing starts with knowing your worth and understanding the value you provide. Flat fees, clear tiers, and strategic positioning allow you to attract clients who respect your work—and pay you accordingly. Inside Tax Resolution Academy®, we help professionals structure their offers and confidently present pricing that reflects the real value of their expertise.
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Here’s to working smarter, not harder!
And a brighter future for your tax practice!
If you want to know more consider joining the Tax Resolution Academy® by clicking this link
I hope this helps.
If you have any questions, please reach out to us.
I would love to hear your thoughts, challenges, and successes in writing your very own book.
Have a GREAT day,
Cordially,
Dan
Dan Henn, CPA, CTR™
Co-Founder, Tax Resolution Academy®
Managing Member
Tax Pro Academy, LLC
P.S. Want to learn more about the Tax Resolution Academy®, go to https://community.taxresolutionacademy.com.
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