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.
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