Credit counseling organizations - Income taxable If requirements not met

 

If I don't meet the requirements of Code Section 501(q), is my income from debt management plans (DMPs) taxed?

Yes, your DMP services will be treated as unrelated trade or business.

Note: For example, if you are a school that is exempt under Code section 501(c)(3) and also offer an incidental amount of DMPs, the income from the DMPs will be taxed.