A report by the Government Accountability Office has raised questions regarding the value of consumer-mandated credit counseling as required by the 2005 Bankruptcy Protection Act. The auditor general's study, which examined the BPA's requirement for consumers to undergo credit counseling and debtor education courses before having debts discharged, said that by the time most clients receive the counseling, their financial situations are dire, leaving them with no viable alternative to bankruptcy. The counseling was intended to help consumers make informed choices about bankruptcy and its alternatives. The auditor general's report was intended to address growing concerns over potential abuses by credit counseling agencies in the wake of the counseling/education requirement. Among other things, the GAO report examined: * The process of approving counseling and education providers; * The content and results of the counseling and education sessions, * The fees charged, and; * The availability of and challenges to accessing services. The GAO has recommended that the Justice Department's U.S. Trustee Program analyze the outcomes of pre-filing credit counseling and issue formal guidance on what constitutes "ability to pay." As of October 2006, the Trustee Program had approved 153 credit counseling and 268 debtor education providers. For the report, go to: www.gao.gov/cgi-bin/getrpt?GAO-07-203.
-
Making use of refunds; playing defense; how to use thin air; and other highlights of recent tax cases.
July 3 -
New FICPA chair begins tenure; Blue & Co. opens new office in Chattanooga; and more news from across the profession.
July 3 -
House Republicans passed the wide-ranging Trump tax legislation dubbed the One Big Beautiful Bill Act, overcoming resistance from a group of GOP holdouts and united opposition from Democrats.
July 3 -
Plus, FileAI announces V2 platform launch; Foxit launches PDF and Document Workflow APIs; and other accounting tech updates.
July 3 -
The American Institute of CPAs' Auditing Standards Board is looking for feedback on a proposed standard updating auditors' responsibilities related to fraud.
July 3 -
The jobs report beat expectations, while the unemployment rate dipped one-tenth of a percentage point to 4.1%.
July 3