(PRWEB) January 14, 2005
The American Association of Debt Management Organizations (AADMO) has issued a report to the Internal Revenue Service (IRS) about the impact on credit counseling agencies and consumers of the potential revocation of the industryÂs 501(c)(3) tax-exempt status.
The report is in response to a request by the IRS for information about the educational and debt relief functions of the industry. It details the real-world educational benefits of debt management plans, the beneficiaries of debt management plans, the burdensome requirements of conflicting state laws, the role of creditors in credit counseling and the modern funding models of non-profit services.
The report comes after several published letters from the IRS denying 501(c)(3) tax-exempt status to new credit counseling agency applications and public speculation about the revocation of 501(c)(3) status for some existing agencies.
Previously, AADMO had supplied the IRS with a 36 page report showing that executive compensation in the credit counseling industry is commensurate with that in the general non-profit organization sector.
AADMO is the credit counseling and debt management industry's largest trade association. It is an industry education and advocacy organization whose mission is to promote and ensure the continued operation and viability of credit counseling and debt management organizations. AADMO provides its members and the consumer public with information about the credit and debt counseling industry. AADMO members are consumer credit counseling agencies debt management organizations, credit counselors, personal finance educators, credit and debt information educators, consumer lawyers and many others.
AADMO is the only trade association to have held state law compliance workshops with the New York State Banking Department and the California Department of Corporations upon enactment of their respective laws governing credit counseling and AADMO is the only trade association for the industry to publish a formal summary of state laws that has been reviewed by state regulators.
For additional information, contact Mark Guimond at 540-548-1965 or
Mark Guimond, Executive Director
American Association of Debt Management Organizations (AADMO)