subject: The Legality Of Cash Gifting [print this page] Cash gifting is a very controversial vocationCash gifting is a very controversial vocation. There are many people who think it is illegal and many who say there are ways around the legalities. The reason the lines are so blurred surrounding the legality of it is because the laws made about cash gifting are also somewhat blurry. These laws are of the sort that can be manipulated and then left to the courts to establish legality behind each individual program.
The way cash gifting works is that the IRS has a law that a certain sum of money can be gifted, tax free, per year to individuals. The catch is that this gift must be made with no expectancy of money ever being return. The problem with cash gifting programs is that they all promise that you will receive money in return. Therefore, after gifting, one generally expects to make back the money they gave and are therefore breaking the law.
The majority of programs are completely illegal but are so small scale that they are not pursued by the government. The IRS is not in the business of prosecuting or going after criminals, the FBI generally will handle these cases. The charges that come after tax evasion can be severe so one must be aware of what they are getting themselves into before committing.
There are many reassurances that gifting programs will give their prospective customers but the underlining fact is that if there is an expectancy of money in return it is illegal. There can be short cuts and weaseling out of this legality by declaring that there was no anticipation of money in return.
Programs have also made up contracts that all new clients sign declaring that are in no way or form expecting to receive any money they have gifted come back to them, some of these programs though, have been convicted and are paying money back or serving time.
Cash Gifting has made many people a lot of money, or else it would not still be around. It is illegal though and it can be very risky to join an established cash gifting program. One never knows how large scale the program is and if it is being investigated. Smaller scale cash gifting programs also have their risks because of the lack of guarantee of money.
It can be very risky to get involved in these sorts of schemes that teeter the law because if you lose your money you can not go to the law to report that you were breaking the law. One must be careful of the programs they enter and the legality behind them.
