- Washington Post: IRS Renews Study of Credit-Counseling Firms
- The Internal Revenue Service is stepping up its scrutiny of nonprofit consumer credit-counseling firms to see if they are legitimate charities and deserve tax-exempt status. . .
“It is suspected that some of these organizations are acting in a commercial for-profit manner or as part of a tax shelter promotion,” noted an IRS document setting agency priorities for this fiscal year, which started in October. A wider probe could be instigated, it added, depending on the results of initial exams.
Good for the IRS. With few exceptions, these firms are bad news. Most people in severe financial distress need RELIEF from debt slavery and not an extension of it. Credit counseling does little for the debtor but boy howdy it sures helps the creditor.