December 11, 2003
The IRS is moving to stop nonprofit credit-counseling organizations from abusing their tax-exempt status, IRS Commissioner Mark Everson said at a recent congressional hearing.
The IRS is increasing its scrutiny of applications for tax-exempt status submitted by credit-counseling organizations, and more than 30 groups that already have charity status are being audited, Mr. Everson told the House Ways and Means Committee. The committee was examining whether some nonprofit counseling groups evade consumer-protection laws and fail to fulfill their charitable missions of educating consumers.
