(Updated May 2006)

Although many credit counseling organizations provide valuable services to persons who find themselves in debt, the IRS is concerned that some have used their tax-exempt status to circumvent consumer protection laws and take advantage of those who are already in financial distress. The following items detail these concerns:

• News Release IR-2006-80 — IRS Takes New Steps on Credit Counseling Groups Following Widespread Abuse
  
  
• IRS Reports on Credit Counseling Initiative
  
  
• Recent Deletions from Cumulative List (Publication 78)
  
  
• News Release IR-2006-25 — IRS Announces "Dirty Dozen" Tax Scams for 2006
  
  
• Commissioner Mark W. Everson's written testimony for the House Ways and Means Committee's Subcommittee on Oversight, Nov. 20, 2003, reviewing the tax-exempt status of credit counseling organizations and IRS actions to combat inappropriate activity (PDF 142K).
  
  
• News Release IR-2003-120 — IRS, FTC and State Regulators Urge Care When Seeking Help from Credit Counseling Organizations
   
• Fact Sheet 2003-117 — IRS Takes Steps to Ensure Credit Counseling Organizations Comply With Requirements for Tax-Exempt Status
   

Related Items:

• Federal Trade Commission — Get consumer tips, pick up scam alerts, or file complaints at the FTC Web site's Consumer Information page.
   
• Tax Information for Charities & Other Non-Profits — Determine whether the organization is tax-exempt and what an organization must do to maintain that status.
   
• National Association of State Charity Officials — Obtain a list of state charity official offices.
   
• Office of Financial Education — To find more information on federal financial education programs and resources.