Updated May 2006
Although many credit counseling organizations provide valuable services to persons who find themselves in debt, the IRS is concerned that some have used their tax-exempt status to circumvent consumer protection laws and take advantage of those who are already in financial distress. The following items detail these concerns:
- News Release IR-2006-80 — IRS Takes New Steps on Credit Counseling Groups Following Widespread Abuse
- IRS Reports on Credit Counseling Initiative
- Revocations of 501(c)(3) Determinations
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News Release IR-2006-25 — IRS Announces "Dirty Dozen" Tax Scams for 2006
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Commissioner Mark W. Everson's written testimony PDF for the House Ways and Means Committee's Subcommittee on Oversight, Nov. 20, 2003, reviewing the tax-exempt status of credit counseling organizations and IRS actions to combat inappropriate activity
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News Release IR-2003-120 — IRS, FTC and State Regulators Urge Care When Seeking Help from Credit Counseling Organizations
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Fact Sheet 2003-117 — IRS Takes Steps to Ensure Credit Counseling Organizations Comply With Requirements for Tax-Exempt Status
Related
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— Get consumer tips, pick up scam alerts, or file complaints at the FTC Web site's Consumer Information page.
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Tax Information for Charities & Other Nonprofits — Determine whether the organization is tax-exempt and what an organization must do to maintain that status.
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— Obtain a list of state charity official offices.
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— To find more information on federal financial education programs and resources.