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Credit Counseling Organizations - Questions and Answers about Section 501(q)

The Pension Protection Act of 2006 enacted Internal Revenue Code section 501(q), which establishes standards that a credit counseling organization must satisfy to qualify for exemption under Code section 501(c)(3) or 501(c)(4).

  1. If I don’t meet the requirements of section 501(q), is my income from debt management plans (DMPs) taxed?

Note: A tax-exempt credit counseling organization must first meet present law standards under section 501(c)(3) or 501(c)(4) before section 501(q) applies.

 

Page Last Reviewed or Updated: 16-Nov-2016