Debt Relief Industry

Take Charge America to Get Their Non-Profit Tax Status Restored

Written by Steve Rhode

Take Charge America, a non-profit credit counseling organization, has been in a battle with the IRS regarding the loss of their 501(c)3 tax status.

The tax status for the organization has been retroactively returned to December 11, 2011 after a settlement was reached with the IRS.

As part of the settlement Take Charge America agreed to give up their rights to contest any audit findings and paid an undisclosed penalty.

Tax status for Take Charge America restored. (Click to Tweet)

Mike Sullivan from Take Charge America had this to say.

“On November 28, 2012, Take Charge America settled a lawsuit against the IRS, which resulted in the restoration of the organization’s 501c3 status. The IRS had revoked Take Charge America’s 501c3 status on February 2, 2012 after we filed a petition with the U.S. Tax Court to conclude an audit process that started in 2004. Take Charge America was among many leading credit counseling agencies that were audited at the time.

Take Charge America elected to pursue a settlement because the U.S. Tax Court had not ruled on any motions or set a trial date for more than a year following the original petition. A lengthy court case would have strained our financial resources, and it was unclear how long the legal process would take. The decision to settle was largely financial. As part of the settlement, the IRS agreed to withdraw its February 2, 2012 revocation of our 501c3 tax exempt status.

Moving forward, Take Charge America will be in a better financial position, allowing us to maintain and expand our educational programs for consumers. Throughout this entire process, we have remained committed to providing our clients and the public at large with much-needed financial education. That mission has and will remain the same.”

I’m sure everyone is celebrating the end of this eight year conflict.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.

READ  Take Charge America Lays Off Substantial Staff

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

1 Comment

  • Sullivan did not mention that Take Charge America paid the IRS 2.5 million dollars and accepted an 11 year retroactive revocation of their 501c3. Their “restored” 501c3 is temporary while they file a new 1023. It is unlikely that the IRS will approve them to be an exempt credit counseling organization in the future.

Leave a Comment

Scroll to Top