The IRS is cracking down on some of the largest credit counseling services.
LAURIE KELLMAN from the AP reports the following:
“The Internal Revenue Service has canceled the tax-exempt status for some of the nation’s largest educational credit counseling services after audits revealed they exist mainly to prey on debt-ridden customers, Commissioner Mark Everson said Monday.”
For people in this industry or people who have used credit counseling this will come as no surprise. There are a lot of “sharks” in the water trying to take peoples money. Do a search online for Credit repair or debt consolidation and you will get many choices and many of those choices will be scams.
The IRS crack down validates much of what we have advised for sometime. Repairing your credit by getting out of debt is not easy and takes time, management, and personal responsibility.
The study took over 2 years and reviewed 41 companies. The other 740 companies will be reviewed for tax-exempt status. Nice to see the Federal Government standup for the little people.
About Administrator
Recent Comments