IRS puts on a white hat



Miami Herald: The Internal Revenue Service is providing a vital public service by rooting out credit-counseling firms that abuse their nonprofit status by exploiting vulnerable clients. The crackdown has exposed a seamy side of the $1 billion nonprofit industry: Some firms charge high fees and profit from it, yet fail to provide any useful counseling.
Targeting non-profits, the IRS audited 63 credit-counseling agencies for two years. Last week the IRS said it was revoking the tax-exempt status of every agency whose audit had been completed.
The IRS says it can't identify the 41 firms until all revocations and appeals have been completed. The IRS should make it a priority, however, to make public the names of the nonprofit impostors so that consumers can take appropriate caution.