If Cash Gifting Is Legal Why Do Some Programs Get Shut Down?

A program in Sacramento called "Women Helping Women" was shut down and the founders and long time members pled guilty and ended up being fined in the triple digits and doing community service. These women followed all of the criteria that the IRS and Federal Law have set up, but still ended up being charged and convicted. What did they do wrong? First, the Women Helping Women Program was found guilty under the Endless Chain Statute. This statute implies that there was no cut off for the length back that the wealth would climb or be distributed, making it more of a pyramid scheme than a tier system or functional cash gifting program. This is important to stay away from because in order to receive any money or to be in functional, legal group. The money must not be dispersed between an entire business, rather just a few, or even better, just one.

It is crucial to always sign contracts when gifting that state that you are not anticipating any sot of reciprocation for gifting another member, rather it is purely at the grifters own discretion.

Gifting money to avoid taxes on the money is considered illegal. In order to avoid this claim the one who is giving could sign a contract along with each gift, stating the intention of the gift. This can be interpreted as the line on the bottom left hand of a hand written check. That line states what the money is to be used for. This is often used for personal checkbook balancing reasons, but the same idea can be applied to cash gifting. When one states the cause and purpose for their gift, and the cause is legitimate and there is no intended or stated return of the gift, then the gift can be interpreted as solely a gift and there is no fault.

Overall if cash gifting is done correctly and within the bounds of the IRS legal code there is no reason that it should be shut down or one should be imprisoned for it. It is always wise to investigate the credentials of a cash gifting program prior to joining as a full time member. Another crucial and often tell tale indicator regarding the cash gifting program is the one who runs it. One could easily look up the founder of the program and whether there are success stories behind their program or rather all sob stories will let you know whether they can be trusted or not.

About the Author:
Cash Gifting with Prosperity 2 People Is the most trusted cash gifting program on the Internet. P2P is a two tier Cash gifting program that simply works better than the rest. To get the details on the Prosperity 2 People program click on the link above or go to my blog at http://p2pcashgiftingtoday.blogspot.com/

Article Originally Published On: http://www.articlesnatch.com

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