Is Cash Gifting illegal? If so, is there any instance where it can work legally? -

I ve looked all over the internet and there are tons of websites that say it is legal, and tons of them that say it is illegal. I know you can send someone cash as a gift(up to $12,000 a year per person), and the IRS doesn t care how you make money as long as they get their taxes from it. So if a cash gifting company has a 1-up or 2-up, I m assuming it is illegal due to the fact that there is no product you are selling when marketing and trying to find people, or that you are trying to get people to sign-up to send you money? If you had a cash gifting site and you did NOT advertise or try to recruit people to send you cash, wouldn t it be considered legal? Or if you had a product or products that people would get when they sent a cash gift would that work? Any help would be greatly appreciated. I would just like to know what you would have to do to make a cash gifting program 100% legal? Thanks in advance.

It is completely legal to gift cash.It s is completely illegal to run ponzi schemes (which is what you seem to be trying to set up).A gift is something someone gives of the own accord, without incentive, to a value of their own choosing and without expecting anything in return. If your scheme fails even one of those tests then the payments are not gifts.There are a lot of legal ways of making money. Stick to those.

I am not trying to set-up a ponzi scheme. I was just wondering if there was a way that a person could do it legally. If it is 100% illegal no matter what the circumstances, I understand. I just didn t know if you could do it legitimately and legally or not. Report Abuse

You re asking how to commit a conspiracy to disguise a felony crime.That s not legal, either.Cash gifting is the illegal sale of unregistered securities, according to one Supreme Court decision, and money laundering according to another.