Cash Gifting Programs

[loren]

So Angel got some money - but the people he got it from
got nothing... and they were no doubt pissed at Angel
for leading them into a loss and they wouldn't want to
be customers of his in the future.

SO - even if you ARE aggressive with something like this
it WILL probably shut down, leaving you with no real
business and a list of people who will never want to
deal with you again.

Do you think there might be a better way to get some money?

Like delivering value to the marketplace and cultivating
long-term customers?

[tereaa]

Cash gifting programs are generally Ponzi schemes and are illegal. There are so many of them out there, that the law can't keep up. The bottom line is, if you aren't one of the first to get started, you are basically giving your money away. And if by chance you do get a substantial amount of money, you can find yourself subject to arrest, imprisonment, fines, and then end up with the IRS on your tail for tax evasion. It's just not worth it.
Edited by: tereaa

[MrsCyrcus]

According to the IRS I can gift up to $13,000 a year tax free.

Publication 950 (9/2008), Introduction to Estate and Gift Taxes

[Yuliya Mironova]

Originally Posted by MrsCyrcus

According to the IRS I can gift up to $13,000 a year tax free.

You can indeed, Dawn. Nobody's disputing that.

The illegality doesn't arise over giving someone a gift. It arises when someone solicits a gift made in the expectation of subequently making a profit by soliciting future gifts from third parties.

Nobody is saying that giving a gift itself is illegal. It's gifting schemes that are illegal.

People's failure to appreciate the distinction between the two is what the promoters of these illegal scams depend on. But on the previous page of the thread, you'll find a whole stack of links to legal references explaining the difference and making this unambiguously clear.

[MrsCyrcus]

Originally Posted by Yulia

You can indeed, Dawn. Nobody's disputing that.

The illegality doesn't arise over giving someone a gift. It arises when someone solicits a gift made in the expectation of subequently making a profit by soliciting future gifts from third parties.

Nobody is saying that giving a gift itself is illegal. It's gifting schemes that are illegal.

People's failure to appreciate the distinction between the two is what the promoters of these illegal scams depend on. But on the previous page of the thread, you'll find a whole stack of links to legal references explaining the difference and making this unambiguously clear.

Did you read the gift splitting section? There's no gifting schemes at all from what I read there. This is actually even better because I can now gift up to $24,000 (in 2008) to a third party.

[Yuliya Mironova]

Originally Posted by MrsCyrcus

There's no gifting schemes at all from what I read there.

That might be because it relates to tax liability, Dawn. That's not what this thread's about.

Cash gifting schemes are illegal. There are countless legal links and references on the previous page proving the point and explaining it in great detail.

[MrsCyrcus]

If the IRS says that I can gift cash up to a certain amount, how is that a scheme? I'm on a 15 minute wait time with the IRS right now to get this cleared up. Must be a lot of people wanting to know about this "scheme".

[Yuliya Mironova]

Originally Posted by MrsCyrcus

If the IRS says that I can gift cash up to a certain amount, how is that a scheme?

I can only repeat what I've already said, really, Dawn.

I'd imagine it's not the IRS's concern whether it's a "scheme" and that it's not their job to judge that anyway.

Nobody is suggesting that making a cash gift is illegal.

The law is really, really clearly set out in all the legal links on the previous page.

By courts, lawyers, regulators and attorneys general.

The fact that the IRS might (and presumably will) say that giving people cash gifts is not in itself illegal (nobody suggested it was) doesn't detract from the illegality of cash-gifting schemes in any way. These crooks normally promote their disgraceful scams by quoting IRS information out of context to make it look to the gullible as if what they're doing isn't illegal. It was ever thus. As you can see from all the legal references on the previous page, that's not what courts, regulators and attorneys general are saying, though.

[eeidde]

Thanks so much for this information. It is quite a shame that the network marketing and home based businesses usually get associated with this type of business. There are many schemes out there like you said "dressed up" like an MLM business. The keys that I have know to look for are:
1. Is there a product or service being delivered that has value to someone?
2. Does money come directly to you and you have to share it with others and the company does not participate in any part of the transaction. (i.e. you get the rights to sell something without any residual to the company).

Hope this helps for anyone to see this type of opportunity show up for them.

Blessing for great success in all that you do.

Ed

[IGotThePower]

Thanks for this information.
I have mixed feelings about this myself.
I've heard lots of good comments on gifting and have even met tons of people who were solicited to participate and are very glad they did.

I have never participated in it but I know there are lots of scams of all sorts biz solicitation out there.
I'll just stay put for now LOL