ARE GIFTING PROGRAMS ILLEGAL?
Not according to your friendly con artist and the uneducated fools who follow them.
The guys/gals at the top are liars. Period. More on these dirt-bags later…..let’s talk about what they show you….and most importantly what they do not show you.
I am basically a live and let live kinda guy, my mentor taught me a long time ago, “you can’t stop people from hurting themselves.”
But there comes a point where the damage to other innocent people can be so massive that those with information and proof and a foolproof way to validate who is telling the truth so you don’t have to take anyone’s word for it surfaces……I have reached the boiling point.
A nice grandma in Michigan I know had her career, livelihood, reputation and life savings, [IRS fines], destroyed.
Enough.
ME
My dad dies when I was 3…..I was raised by 2 fabulous uncles. Uncle Dan’s job? 43 years with the IRS.
We’ve saved people 10s of 1000s over the years by leveraging the Homebased Tax Advantage….I am no fan of taxes but a little more versed than the average person.
WHAT THEY SHOW YOU
The clowns are as slick as puppy shit on a pump handle.
What they show people who even question the legality of these ‘gifting’ programs is PART of the law.
They show the innocent BIG money and the Tax Laws regarding gifts and the tax exclusion.
They show them things like this:
| Gift Tax Annual Exclusion | |
|---|---|
| Year(s) | Annual Exclusion |
| 1998 – 2001 | $10,000 |
| 2002 – 2005 | $11,000 |
| 2006 – 2008 | $12,000 |
| 2009 | $13,000 |
They tell them they can get ‘gifts’…..up to 13,000 and don’t have to pay tax on it. Impressive
And, it is all true.
Some of the more arrogant flim-flam-men even send them a link to that area of the IRS booklet.
“So, Mrs. Idiot,” you can be getting $1000s of bucks overnighted to you daily, all gifts and you never have to pay taxes….would that be OK with you?”
WHAT THEY DON”T SHOW YOU
Lying by omission is the worst kind of lie. Not only is it a lie, it’s premeditated deception.
Con artists have more scruples than these scumbags.
What they do not show their prospects is the DEFINITION of a gift……right out of the same booklet.
“What is considered a gift?
Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money’s worth) is not received in return.”
If your intent is giving money to someone you do not know…..with the expectation of receiving gain in return it DOES NOT QUALIFY as a gift.
Some of these folks have gone so far as to create a document you sign saying you are giving without expecting anything in return……which validates what I am saying…..and for the record holds ZERO water with the IRS.
Additionally, who you can give a ‘gift’ to is also spelled out……and strangers do not qualify…..but, that really doesn’t matter because should you get or become involved you have instantly, without meaning to, broken the law.
Think about it…you are not sending someone you don’t know money except for 1 reason…..to make money. This is no gift common sense wise and it is no gift as far as the IRS is concerned.
Oh, and while I’m on it…..ignorance of the law, like my grandma friend, is ZERO defense. A magnificent woman…a milk and cookies gal who never got a parking ticket…..publiclly humiliated in a small town where she has lived her entire life. Ruined.
Oh, and she did have to pay taxes and penalties on the few thousand she got.
Let me make it clear: It is not a GIFT because it does not fit the definition of a GIFT.
The information about gift exemptions is TRUE…..but does not apply to something that is not a gift.
Buck-up with these scumbags and you’re looking a minimum 3 counts….all Federal offenses.
Ponzi-Mail Fraud-Income Tax Evasion….for EACH transaction.
501-C3′s?
Some will tell you they are 501-C3’s …..legal non-profits.
So what?
So was Jim and Tammy Baker’s church/TV show. Didn’t keep Jim out of jail…..and it won’t keep you out of danger/trouble.
It is a con job kicked up a notch……why would they do that is they were not trying to con you?
DON’T BELIEVE ME or THE “GIFTERS”
Here is a surefire way to keep you, your family and your dreams safe.
Print out the material and bring it to your local IRS office.
Ask the person recruiting you to meet you there.
If they live in another town or state…..tell them to fly and I will cover their airfare if the IRS says, “Looks fine to me.”
With so many great networking companies and great ways to make money online….don’t let your passion to do more for your family and your impatience to make it happen cloud your judgement and common sense.
I want to urge you to forward this post…to folks you care about.
And when the guy calls you back who is trying to get you into a gifting program and tells you I don’t know what I am talking about……invite him to go to the IRS with you…..while he may say yes on the phone…..I can promise you it will never happen…..and trouble will never show up on your doorstep.
believe
mark j
Mark, I just posted this on my FB wall and I urge ALL network marketing and direct sales people to do the same.
I was approached by “gifters” while I was losing everything I owned, and it was tempting. But I knew in my heart that it was a lie and that my reputation was all that I had left.
Thank God I did not succumb to the temptation!
JB
Great article! I have always told people to call their local Attorney Generals office…I think the IRS visit has a little more kick!
Keep up the great work!
Paul
Hi Mark,
I wish that we had this a few months ago, several of my old business partners tried to get me into one of these and I said, No it didn’t sound right to me and passed. Well, you know what happened, they had someone call me on a three way and really laid it on me. He mentioned all that you did, it was perfectly legal and he had checked it all out. Then he became angry at me and said I insulted his integrity and hung up. Bottom Line-my friends lost some money and are now “burnt-out” on MLM.
Wow, this is a great post Mark. Although I already knew this, your straight-to-the-pointedness really hits home. Also, now we can share this with folks we run across while networking who just don’t know the truth. Thanks for all the goodness and truth you contribute to our great profession.
I’ve had several people asking me to join one of these. I’ve always felt true income comes from product moving not just money so I’ve always said no.
Some people do treat you like you are insulting them when you say no.
I truly appreciate this info and will pass it on.
Thank you Mark.
Great information Mark, to bad not everybody pays attention when they are first approached.
Great Article Mark !
Way to reveal the Truth My Friend !
I totally agree Mark these types of people gotta be stopped one way or another. I am so glad that you spoke up. As the old saying goes,
If you stand for something,
You will fall for anything !
Way To Take A Stand !
Way to go, Mark! This article NEEDED to be published! With your permission, I will re-post this on my blog with author credits to you.
I watched a gal try to scam an older gentleman down on his luck during these tough economic times and I only had one comment – where’s the product? Today, many people are desperate and will fall prey to such scams. Thanks Mark for posting. I’m sending it on to the gentleman. He backed away from any mlm business because of all the stuff thrown at him like what you are talking about in this post. Unfortunate that such scams can ruin it for others that want to do a legitimate trustworthy business. It also doesn’t help the reputation of network marketing. Great post.
Fabulous information Mark! There are still a lot of unsuspecting and vulnerable souls out there who need to know this. Have shared to all my FB and Twitter followers.
Chuck
Wow, great blog post. I never heard of gifting programs before but now I know what to look out for. Thanks for sharing this valuable information!
Sherman
Sherman
went to your blog – incredible stuff man…..great, great stuff
I did not find a place to comment…….
Would it be OK if I ran a couple of your posts on my blog, full credit to you of course….sort of a ‘guest blogger; thing
no worries either way…..just wonderful material…..we may be twins sperated at birth 🙂
believe
mark j
Thanks for posting this Mark! I always knew in my heart and brain these must be illegal but didn’t know where to look for the facts. I shared on Facebook and Twitter.
Mark, I’ve never been presented with such a scheme. Your information is valuable and I will definitely share it. I really liked the the last section about inviting the caller to meet you at the IRS office. I almost wish someone would contact me so that I could apply that tactic!
Thank you Mark for diving into this issue of “gifting”. To me it made sense that they are nothing more than illegal. ~ Darlene
Wow, I had not been approached but now I know. Thanks, Mark
I can’t believe how people STILL FALL for this OLDEST trick (crap) in the book!
Geez…
What ERKS me is when they ask if our program is a “Gifting” program…
I JUST Want to hang up on them lol!!!
[…] You’re Not Told About ‘Gifting Programs’ Will Ruin You ~ IRS Documentation Jump to Comments ARE GIFTING PROGRAMS […]
Hi Mark, great post and very important, if not vital, advise to new and reminders to old on gifting schemes.
Hi Mark, Thank you for speaking straight out. I get approached by gifters from time to time. When I told the last one “it’s illegal”, his comment back was – “well that’s why we have to do it the way we do”. He didn’t see the harm especially since it gave his prospects a way to make some quick money so they could join his MLM. Pretty convoluted thinking, if you ask me.
Thanks again.
~Jennifer
Thank you for such a well written, thoughtful article.
So, how about a counter-truth that is the best of both worlds!
Cash Gifting is perfectly legal as long as it fits the right criteria. A pyramid scheme is ILLEGAL, but MLM or Clubs are not. The compensation structure determines the legality. A “Direct 1-Up” system like mine is NOT a pyramid, and is clearly defined.
As far as taxes go, this has NOTHING to do with the Cash Gifting Program itself. That is up to the individuals themselves to decide.
Everyone who joins my Cash Gifting community gets the benefit of joining a team of like-minded people focused on prosperity and wealth, and virtually everyone starts to learn about taxes right away. And most importantly how to PROPERLY pay and NOT pay taxes.
Regardless of your income source (large gifts included), INCOME TAX responsibilities are predicated on PERSONAL income as determined by code. Virtually every wealthy person in the world knows that owning a business and properly managing your money leads to massive personal expansion and PERSONAL INCOME TAX burden is almost zero (in most cases). There are land taxes, import taxes, capital gains taxes, luxury taxes, etc, etc, etc… and people hardly ever talk about AAALLLL the other taxes out there.
I encourage all people to get educated in tax laws and use the tax code to one’s advantage AS IT IS INTENTED! The reason Donald Trump didn’t pay an PERSONAL INCOME TAX was because his money is invested in business. The tax code is DESIGNED to encourage our society to remain entrepreneurial, and invest in ourselves and our community, and we are given the opportunity to alleviate our own PERSONAL INCOME TAX burden by doing so.
My number one lesson for my team is real-estate investment, and capital investments with deferred gains (which will probably never be realized because we use long-hold strategies; or when they are realized, the portfolio is worth millions, so the tax burden is minimal compared to the profit).
I’m a business owner (construction company), and network marketer (ACN), a real estate investor (multi-family residential) and a member of the longest standing Cash Gifting program online; realcashlife.com. I pay ALL the taxes I’m obligated to pay by law and every activity I do is ethically conducted. I want to be able to see ANY one of my customers, clients, team-mates (or the law) in the grocery store or in an airport at any time, and not want to hide behind a pillar to not be seen.
Email me at chris@realcashlife.com if you want a completely transparent and forthright look at what a Cash Gifting program looks like when it is operated by an ethical and success oriented team.
Mark lets be real and discuss the amount people are scammed with joining crypto programs instead. Gifting programs require a once-off unconditional gift to someone else in the world and its normally a once-off $100 out of their own pocket. This amount doesn’t break the bank??? A couple of Pizza’s maybe, so really???
There is so much un-employment globally and so many that need to be helped to put food on the table or send their kids to school and much more…
Why not comment on the communities that offer help to others through these gifting management platforms, but I guess spreading negative news sells better, ay?
I have personally had the pleasure of meeting many of the creators of such gifting schemes and most are amazing human beings with a heart bigger than Texas, whom selflessly give and change lives by the 1000’s.
Don’t be one sided and generalize just because of the ones that create it for self enrichment… There are always two kinds of people doing it for different reasons!!
Not impressed with your generalization message above at all!
This is in your bio…so..uhm…???
‘About Mark”
We believe the only way to keep something is to give it away and that which we share will multiply and that which we hold will diminish. Our ongoing success is the direct result of folks freely giving to us and the more we give it away, the more it returns.
Hope this message helps you gain a wider perspective and rather spread positivity my friend
Regards
J
Folks, this is either a bald-faced lie or someone who is to do the real investigating. What they never tell you [or a to stupid and to lazy and to greedy] is the definition of a gift according to the IRS… which is in the same sections they declare allows it. The chances of you getting caught are very slim… the penalty is massive.
Fact: Gifting clubs are criminal enterprises. Organizers are guilty of a felony, and participants are guilty of a misdemeanor. Claim: According to the IRS this is legitimate because the law allows you to give someone up to $13,000 each year without a tax consequence. Fact: Gifting clubs are not approved by the IRS.
Here’s why… A “gift” is allowed by IRS up to 16,000… it is not tax deductible but filling out a form for the gift means the recipient gets the money tax-free.. does not have to claim it as income.
The issue becomes real with the IRS definition of a gift… “giving it with no expectation of a return”… if there is an expectation, it is illegal and a ponzi scheme. Now these con artists [or stupid idiots who believed a con artist] think all you have to do say is you’re giving without expectation of a return… which, of course, is a lie. The IRS knows sending some other idiot 500, 1000 etc.. to a total stranger who you are instructed to give it to is done with the expectation of a return. And the lie you tell, if you are bagged will not hold up. The fines and mandates will break you, your credit and your credibility.
LOL… you’re out of your depth Jason… and while most people would consider it an insult to take a beautiful concept our of Emerson’s Law …[“We believe the only way to keep something is to give it away and that which we share will multiply and that which we hold will diminish. Our ongoing success is the direct result of folks freely giving to us and the more we give it away, the more it returns.”] and tries to use it as an argument for their [illegal] advice I don’t take it that way… OMGoodness, do think the readers of this blog are dumb?
Folks, this is either a bald-faced lie or someone who is to do the real investigating. What they never tell you [or a to stupid and to lazy and to greedy] is the definition of a gift according to the IRS… which is in the same sections they declare allows it. The chances of you getting caught are very slim… the penalty is massive.
Fact: Gifting clubs are criminal enterprises. Organizers are guilty of a felony, and participants are guilty of a misdemeanor. Claim: According to the IRS this is legitimate because the law allows you to give someone up to $13,000 each year without a tax consequence. Fact: Gifting clubs are not approved by the IRS.
Here’s why… A “gift” is allowed by IRS up to 16,000… it is not tax deductible but filling out a form for the gift means the recipient gets the money tax-free.. does not have to claim it as income.
The issue becomes real with the IRS definition of a gift… “giving it with no expectation of a return”… if there is an expectation, it is illegal and a ponzi scheme. Now these con artists [or stupid idiots who believed a con artist] think all you have to do say is you’re giving without expectation of a return… which, of course, is a lie. The IRS knows sending some other idiot 500, 1000 etc.. to a total stranger who you are instructed to give it to is done with the expectation of a return. And the lie you tell, if you are bagged will not hold up. The fines and mandates will break you, your credit and your credibility.
There is a really simple solution Jason… take your gifting program to the IRS and ask them to join. Good grief man… I know I don’t have all the answers for many of the situations in people’s lives but I do know, being raised by an IRS agent knowing 11 people who’s lives and credit got crushed in these schemes advising people this is legal is greedy, stupid and lacks integrity. Instead of debating… go to an IRS agent and get the facts right