The IRS says it is suspending the company’s tax-exempt status and could take legal action against its tax preparers over unpaid taxes.
Intermediary services provider friends4Life is not paying its taxes in full because of the delay, the IRS said in a statement on Tuesday.
It said the company has received a notice from the IRS that it may not be able to collect the tax on a future taxable income.
The IRS said that the IRS was taking the matter seriously.
Intermediate providers of services to consumers include credit counseling, payday loans, and other financial aid, the statement said.
They may be eligible for tax credits that may be used for other purposes, including the refundable tax credit.
Friends4Life, which provides financial counseling and payday loans to people in relationships with others, was incorporated in Delaware in 2014.
The company provides financial services to more than 50 million people each year.
In March, the U.S. Department of Treasury issued an interim guidance on how to assess tax and social security refunds, saying that some consumers are being wrongly assessed as paying more taxes than they owe.
The Treasury said that a $1,000 tax bill may be assessed at a lower rate than the amount paid by an individual.
The agency also said that some people may be underpaying Social Security and Medicare taxes.