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IRS Crackdown on Credit Counseling Industry abuses

dmcowen674

No Lifer
Oct 13, 1999
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www.alienbabeltech.com
1--14-2003 Not-for-Profit Credit Counselors Are Targets of an I.R.S. Inquiry

"We take a dim view of the use of the tax code by credit counseling groups to game the system, and are concerned by recent developments," said Mark W. Everson, the I.R.S. commissioner. "Those groups that are using the tax code to skirt consumer protection laws should think twice. We will work with other federal agencies and state regulators to combat abuse in this area."

Illinois and Missouri have sued AmeriDebt, one of the biggest agencies, saying it charges excessive fees and diverts money to companies that are affiliated with it.

On its most recent tax return, Consolidated Credit Counseling in Fort Lauderdale, Fla., another of the biggest agencies, lists five for-profit businesses as related organizations.

Florida public records list Howard Dvorkin, the president of Consolidated Credit, as the sole officer of three of those organizations.
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Can you say BUSTED...
 

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