no one can answer your question. with the IRS you may be able to do your own offer compromise (this is what those tax reduction firms do unless you can provide documentation that the IRS overbilled you). many of the tax reduction companies only handle large debts because they get large fees for settling. only they could tell you how much but I wouldn't be surprised if it was 20% or more of the tax reduction.
how can the IRS overbill. example: you are self-employed and get a 1099-MISC for $100,000 that you leave off your return. the IRS will tax you on that + Social Security, Medicare Taxes, Penalties, and Interest. you have $90,000 in supportable deductions to offset the income but the IRS doesn't know this. so you or they go to the IRS and present the support. Now you only owe taxes on $10,000 and related Social Security and Medicare taxes, penalties and interest. In addition, there may be other deductions and credits you qualify for, such as the 20% 199A deduction, deduction for self-employed health insurance, etc.
