IRS Examining Credit Coiunseling Firms

Courtesy of the National Association of Enrolled Agents (NAEA)


IRS is auditing a number of credit counseling firms that account for roughly half the revenue of this $1 billion industry. Clients have complained about deceptive and fraudulent marketing in firms purporting to assist debtors. Many of these firms have been organized as nonprofits.


IRS Examining Compensation Levels of Exempt Organization Executives

In a news release, IRS officials announced a new initiative looking at the compensation levels of executives of exempt organizations. A number of charitable organizations have been roiled by reports of misconduct in this area.

[TaxMama: Yaaaaaaayyyyyy! I really applaud IRS for both these steps. Don't you just hate it when your friends, who are already in trouble, go to one of those credit counseling services and get ripped off worse? You've never seen TaxMama recommend or advertise these firms, because I rarely find one I trust.

And the charities. How wonderful. Does any executive of a non-profit organization of any kind, need to get a MILLION dollars or more of compensation? Is that indecent? (spelled United Way, among others) I never want my contributions to go to fund a lifestyle that outrageous. You DO know that, before you make contributions, you can look up your charity's financial report and see what the highly compensated officers are earning, don't you? Just go to Guide Star.


Courtesy NAEA
Published TaxMama.com 8.13.04