Tuesday, May 16, 2006

irs versus credit counseling centers

Good for the IRS, which said it plans to revoke tax-free status for all 41 of the credit counselors they have audited so far. These credit counselors are no more charitable than a used car dealership that helps arrange financing to buy that clunker you really can't afford anyway. Revoking their tax-free status is a start, but it's great to hear they are also opening some criminal investigations.

Now the question is, are there enough firms to provide the mandatory credit counseling Congress required in its new screw-the-poor-and-unlucky bankruptcy law that went into effect last year? Answer will be, nope... So how do they get the mandatory counseling before they can file for bankruptcy?