The IRS has just posted a public update on the nonprofit credit counseling agencies that have recently lost their 501(c)3 tax status from the IRS.
The companies named lost their nonprofit status in April and early May, 2012. They include:
- Budget Right Debt Management, Inc. Lake Mary, FL 4/9/12
- Budget Right Debt Management, Inc. Maitland, FL 4/9/12
- Consumer Advocacy Group, Inc. Beverly Hills, CA 4/16/12
- CreditGuard of America, Inc. Boca Raton, FL 4/16/12
- A Family Budget Counseling, Inc. Huntington City, NY 4/30/12
- Freedom Debt Management, Inc. Boca Raton, FL 5/7/12
Sincerly,
Steve
Steve
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They lost tax exempt status because they were not acheiving a tax exempt purpose.
@571f66dbee31976b67e537babef034d0:disqus Can you explain what that means and how it relates to the debt management programs that the non profits offer?
Why was their non profit status revoked ? Was it because they were doing for-profit settlement?
These appear the result of the nonprofit credit counseling IRS examinations that had been in the work for some time and not the result of any debt settlement activity.