It’s a fair question. If you owe the IRS thousands of dollars, how does a tax relief company profit from helping you? Lexington Tax Group makes money the same way any professional firm does—by charging fees for expert services that are designed to be top-tier yet affordable for all budgets. They do not take a percentage of your IRS tax debt, receive commissions from the IRS, or “take a cut” of whatever reduction you achieve.
Lexington Tax Group operates as a tax resolution firm focused on delivering high-quality, accessible solutions. Their clients typically owe back taxes, face wage garnishments or bank levies, and need licensed professionals to negotiate on their behalf. Revenue is generated through structured professional service fees for representation and negotiation—while the IRS is paid separately through whatever payment plan or settlement is approved. The firm acts as an intermediary between clients and tax authorities, following a multi-phase framework for service delivery. They offer a free consultation to assess your tax situation, plus a three-business-day money-back guarantee on investigation fees if you decide not to move forward.
How Lexington Tax Group’s Fee Structure Actually Works
Unlike tax relief companies that promise “pennies on the dollar” before reviewing a single document, Lexington Tax Group uses a transparent, phased fee model designed to fit a variety of financial situations. Common fee structures include flat fees and retainer fees—not a sliding percentage tied to your debt size.
Fees are typically divided into two main phases: an investigation and protection phase, followed by a resolution and implementation phase. Each fee is quoted in writing after reviewing your tax problem. The scope of services varies based on the complexity of the tax issues, including factors like:
- Total debt amount ($10,000 vs. $150,000+)
- Number of unfiled tax years
- Whether both IRS and state tax agencies are involved
- Active levies, liens, or garnishments
Clients pay Lexington Tax Group directly for professional work. They pay the IRS or state tax agency separately through approved installment plans, Offers in Compromise, or hardship arrangements. Legitimate tax relief companies must provide a written fee agreement—and reputable companies like Lexington do exactly that. Be cautious of any tax group that quotes fees solely as a percentage of “how much we save you” or guarantees results before examining your finances.
Phase 1: Investigation, Compliance Check, and Protective Actions
The first way Lexington Tax Group earns money is through a clearly defined upfront fee for an in-depth investigation phase. The firm performs eligibility screening for IRS relief programs during the free initial consultation at no cost—but the deeper investigation work that follows involves real professional time.
During this phase, enrolled agents, tax attorneys, and CPAs pull IRS and state tax transcripts—often covering six to ten years—to confirm balances, penalties, interest, and Collection Statute Expiration Dates. Development of a resolution strategy involves reviewing IRS transcripts and financial documents. Clients undergo a thorough financial evaluation before any negotiation begins.
Their target customers often struggle with overwhelming IRS enforcement actions. The IRS can levy a business bank account for unpaid taxes, and wage garnishments can occur after IRS collection notices are ignored. During this phase, Lexington’s experienced team may contact the IRS to pause or soften aggressive collection, helping clients mitigate these actions before a formal settlement proposal is even drafted.
For example, a client owing $45,000 in IRS debt with three years of unfiled returns might enter this phase to figure out exactly what they owe, which penalties can be challenged, and whether the collection statute is close to expiring. Lexington’s three-business-day money-back guarantee on payments made for this investigation phase gives consumers a clear exit ramp if they decide not to continue.
Phase 2: Resolution, Negotiation, and Implementation
Once the investigation is complete and the client approves the strategy, Lexington Tax Group earns additional fees for the heavy lifting. This phase often includes preparing and filing multiple years of back tax returns, amending incorrect filings, and addressing both IRS and state tax problems.
The firm evaluates clients for various relief programs, including:
- IRS Fresh Start Program expanded options
- Offer in Compromise settlements
- Installment and partial pay agreements
- Penalty abatement requests
- Currently Not Collectible hardship status
Here’s what most taxpayers need to understand: not everyone qualifies for advertised IRS hardship programs. The IRS accepted only about 21% of Offer in Compromise applications in 2024, so anyone guaranteeing approval before reviewing your finances is selling a promise they cannot keep. While taxpayers can request a payment agreement online with the IRS directly, the complexity of multi-year debt, penalties, and compliance issues is where Lexington’s tax experts earn their fees.
Consider a realistic example: a client owes $80,000 in federal taxes with a lien and active garnishment. Lexington’s team negotiates directly with IRS revenue officers, handles all paperwork, and perhaps secures a sustainable installment plan after an Offer in Compromise is denied. The firm charges fees for professional services rather than collecting the tax debt itself—those dollars go toward expert time, not a share of your savings.
Ongoing Support, Compliance, and How That Creates Long-Term Value
Lexington Tax Group doesn’t disappear after a settlement is approved. For many clients—individuals and small business owners alike—the firm provides continuing services such as annual tax return filing, monitoring of IRS payment plans, and help responding to new IRS or state tax notices. Clients typically face financial distress related to IRS liabilities, and ongoing compliance support helps protect both their finances and the resolution Lexington negotiated.
Some follow-up services may be billed separately (new years of business returns or new state tax questions), but fees are disclosed before work begins. The goal is sustainable debt resolution and long-term financial stability—not a one-time quick fix that leaves you vulnerable to falling back into tax debt.
How Lexington Tax Group Differs from Problematic Tax Relief Companies
The tax relief industry has real problems. Many tax relief companies charge thousands of dollars in large upfront fees without conducting a proper investigation. Scammers often promise significant tax debt reductions that are unrealistic, and most tax relief companies do not settle tax debts as promised. Many companies employ more salespeople than licensed professionals—meaning the person on the phone may have zero qualifications to handle your case.
Here are red flags that separate problematic firms from reputable companies:
| Red Flag | What Lexington Does Instead |
|---|---|
| Guarantees specific reduction before review | Honest assessment after full investigation |
| Charges percentage of “savings” | Flat, disclosed fees for defined work |
| No licensed professionals on staff | Uses tax attorneys, enrolled agents, and CPAs |
| No written agreement | Written engagement with clear scope per phase |
| No refund option | 3-business-day money-back guarantee on investigation fees |
Lexington Tax Group employs licensed tax professionals including tax attorneys and CPAs whose income is tied to actual professional work—transcript review, return preparation, legal representation, and negotiation. Wage garnishments can be stopped through negotiation with qualified tax relief services, and that negotiation requires real expertise, not a sales script. You can learn more about avoiding debt settlement scams and choosing the right tax firm to protect yourself.
If you owe the IRS and want honest answers about what resolution will cost, contact Lexington Tax Group for a free consultation. Ask about fees, payment options, and how the process works for your specific tax situation—no obligation, no pressure.
