IRS does not say that Cash Gifting is legal

[karensgifts]

People have the right to give there money to any one they choose. It's no different then giving to charities. When you give to charities you still expect something. You expect that these people will be helped and that your money is helping them.

[bustarymes1]

I'm not sad...I trust in God and as a person that need to be justified there is a reward for doing it his way. I do my part and expect God to do his part. That don't make me sad that make me blessed that men will give to my chest and fill it to over flowing. And yes my motivation is that because I give as.. men give to me and assist in filling my chest. So there is a promise made to me and because of that promise it motivates me to give in an organized manner.

[PeterFullerMBA]

@bustarymes1 - no, it actually makes you very sad as a person to use religion to manipulate others to feed your greed

[bustarymes1]

I Love the christian angle. It is the Law I live by. You are in err about it and should give it a try to see if it is true. IT says" GIVE and IT shall be Given to good measure shaken TOGETHER running over will MEN Give unto YOUR Chest...I don't have to expect his word to be true. He said it...believing his word is on God to bring it to pass. And when men give unto my chest I know that it work and will grow thereby.

[PeterFullerMBA]

@bustarymes1 You are a sad person bustarymes1 if you use Christianity to justify your greed. Organized Cash gifting is about receiving not giving.

[bustarymes1]

The christian is the angle that I love because it is tried and true..I tried it and found no fault in it. It says " Give and it shall be Given to You....

[PeterFullerMBA]

@bustarymes1 I have no argument with Christinity, but you are focusing on the "given to" which Christ would see right through. The motivation of your giving is important.

[bustarymes1]

There is no problem looking at this as a business. That is what life is about. AS christians (not saying you are one or not) we are to do business until he comes. Part of that business is giving..If the government want a piece of the action they will find a way to get it. As for now this is done in secret.

[PeterFullerMBA]

@bustarymes1 - Ah, the Christian angle :) Giving freely is a Christian virtue, expecting to receive is not. Organized Cash Gifting is about expecting to receive.

[bustarymes1]

would you agree then if that business is a 501c ?

nevertheless, if you and I agree to give money lets say $5 to anyone we choose. I give you money. Are you then obligated to file that money to the IRS? Am I obligated to report that money I gave? And I would like you to know that everyone IN THE WORLD is my FRIEND so therefore, Me and my friends have orginized to give because it the right thing to do.

[PeterFullerMBA]

@bustarymes1 - it does not matter how your business is organized and you are also looking at this backwards. You are looking at it from the point of view of the giver. I give you $5 because I read something you wrote and I liked it. You did not ask for it and it was a true gift. The proper way of looking at this is from the receiver point of view and I fail to see how you are not operating as a organized business.

[bustarymes1]

Peter, Im sure people have no problem paying taxes on their earned income, However, I don't have to pay if it is not earn but given. Give that what belongs to the king..Its cash money and no one needs to know who gave it but the person that printed on the money and he not telling

[PeterFullerMBA]

@bustarymes1 - Organized giving is a commercial business. If a friend or family member gave you money then I agree, the cash gifting rules apply. However Cash Gifting is an organized, commercial business.

[bustarymes1]

If I was working for the IRS and my job is to collect taxes then I would tell you yes it is illigit...But If I was an lawyer than it is my job to point out the law. This guy asked the IRS! When you get audited the IRS not there to help you but to get the money!

A lawyer is there to represent you and will eat his ass up.

[PeterFullerMBA]

@bustarymes1 - Actually not true at all and not the point of the video. The point of the video is that the IRS does not determine the legality of a revenue source, only if it is taxable. Plus cash gifting is a business and thus not covered by the Cash Gifting rules. As for a good lawyer, good luck, because there is no case law where a pyramid scheme succeeded in defending themselves.

[MannsMasterMind]

i can appreciate Peter's standpoint; the problem I have with this conversation is that he was doing 95% of all the talking. He wasn't really asking questions to get answers. He spent the whole time telling the IRS agent what he felt was right. He could have finished the conversation at 2 minutes by simply asking to- the- point - questions. His main focus point was asking "because something is not taxable, doesnt make it legal?". Simple question to ask is "Are these programs legal?" period

[PeterFullerMBA]

@MannsMasterMind I have to agree, I talked too much :)

However the IRS cannot answer the question whether or not a source of revenue is legal, only if it is taxable, which was the point of the video

[malibuslimm]

ok, so you just pay taxes. I have no problem with that. anyone who doesnt want to pay taxes and they are making money, need to be penalized. You have o pay the piper. good point.

[readywerx]

I have been to the SEC , IRS and FTC sites. Under a concentrated "search" for cash gifting and the laws nothing specific came up other than a "gotcha" with no reference to a law. If something breaks a Federal law where can we go to read it so we don't have soo much conjecture? I tried the same concentrated search for my state. Could find nothing other than a repeal of a tax. I am not affiliated , but the more people talk the less I can prove about giftings illegality. I need a specific URL.

[PeterFullerMBA]

@readywerx You need to search for laws pertaining to pyramid schemes and consumer protection

[readywerx]

@PeterFullerMBA I think it would solidify your point if you could post hyperlinks to the specific Federal laws and possibly some state examples. I think it would help the dialogue . As I can't link from a comment section. Thanks

[rgoutal]

Thanks for doing this video and explaining the basic definitions of gift, business, etc (as the IRS sees it) instead of how some people would like to believe. There is an old legal view - Ignorance is not an excuse.

[C2XThunder]

Isn't illegal to record someone [and put it one youtube] without their knowloge?

[PeterFullerMBA]

@C2XThunder -> No it is not if you are a participant in the conversation., plus this was nor a private call between two people, it was with an federal government employee

[seamist22]

Yes I do see the irony in that but that is the way it is, as in buyer beware. What I meant was I have never seen the specific title like the income tax law. They can put you in jail for anything they want while others get off scott free for the same thing as with the Sherry Peel/Joe Bannister trials. A scheme is the intent to cheat somone out of someting of value. To label all gifting programs as a scheme you must prove that intent. When most people are just trying to help each other.

[PeterFullerMBA]

@seamist22 - so easy to find the state and FTC laws if you just look, and the laws do not define a scheme as you do.

[seamist22]

There is another guy who calls himself Prof. Higgins who's sole purpose in life is to proclaim that all gifting programs are illegal. Any business can be illegal if they break the law. I have never seen a law or statute thay says gifting programs are illegal. It depends which state they operate out of. Like in Colorado you cannot start out at more than fifty dollars. There are rules but you can be in compliance with a good legal structure.

[PeterFullerMBA]

@seamist22 - Let me get this straight, you are aware that a law exists in Colorado that says cash gifting is an illegal pyramid scheme but only if the amount to participate is more than $50 (which is true) but you are not aware of any laws or statutes that say cash gifting is illegal. Do you see the irony of that :)

[elsimmonsII]

Well I guess all of the State Laws and the FTC must've missed something. Cash Gifting is still thriving!! Oh by the way , the Video is 100% Fake and definitely edited. Where is the real proof? Last I checked, you have been promoting that Cash gifting is illegal. Any two fools can stage an interview.

[PeterFullerMBA]

@elsimmonsII - So is prostitution :) Get the analogy.

So sad you have to resort to false claims. The video is an unedited, uninterupted interview with the IRS, very easy to prove by making one call. Sort of like how you will not do basic research to know that cash gifting is illegal.

Why do you keep coming back here, to get a link back to you :)

[zane757]

Please give me a break i just dont get ppl like you i really dont. I mean god show me the damn documents that state that gifting is illegal! I want proof this video could be edited (im sure it is) let me guess u have a system that is about the same as what u say is illegal for 75 bucks am i right?

[PeterFullerMBA]

@zane757 let's see, FTC and State laws against illegal pyramids and the many court cases shutting down cash gifting schemes as illegal pyramids, not my fault you do not know how to do basic research. The video is a 100% non-edited conversation with the IRS and finally, last I checked I am not promoting anything

[BOBnothingonYou]

Fail... too bad you confusing legitimate gifting activity with ponzi schemes (aka pyramid schemes). The basic essence of what makes ponzi's & pyramid schemes illegal is some sort of fraud & deception occured to get the money. PERIOD. Look at Madoff that's what he did...

[PeterFullerMBA]

@BOBnothingonYou - All cash gifting programs are illegal pyramid schemes. Just read the case law.

[elsimmonsII]

@BOBnothingonYou Man you got some nerve talking about what is illegal when you promote Piracy of motion Pictures on your Channel. Sounds Hypocritical to me!

[elsimmons2]

I am not hiding either. Let's face it we both have agendas, you are trying to be an "Internet Cop" of which you are a complete and utter failure at becuse cash gifting is alive and thiving and I will continue to help others prosper. So you do what you do and I'll do what I'll do.

[PeterFullerMBA]

@elsimmons2 You are encouraging people to do something illegal, I guess you are proud of that as long as you can take their money. At least it is good that you admit you have an agenda.

[HerbalifeCash]

"Individuals play the game, but teams beat the odds." Glad to team up with you and sub to your channel, please sub back so we can continue growing together.

Keep spreading your light!

Justin

[garcaro1]

Very interesting Peter. I have always heard about this scam but I like how you got the IRS on the line. Good move!

[etaylor38]

This is a fake interview of someone trying to destroy something that works. Nothing about Cash Gifting is illegal.

Also in the interview your telling the person what to say, and they are not evening controling the situation or checking the there knowledge base. The information from the IRS is to deep for 1 person to fully understand without check the knowledge base. fake! interview.

People there is real interview about cash gifting being legal.

[PeterFullerMBA]

@etaylor38 cool down and take a big breath :)

Just think for a few minutes what the message of this video is. If you are not clear the message is that the Tax Code does not determine if a revenue source is legal or not.. If you need a practical example take a look at the history of Al Capone. He died in jail for tax evasion. He did not report his illegal revenue.

[PeterFullerMBA]

@etaylor38 - The interview is 100% real and you could easily verify the person who I spoke with, since they give their name and id number. But then it is easier for you just to ignore that :)

[elsimmons2]

@PeterFullerMBA

Anybody can give a fake name and ID silly !!!!!!

[PeterFullerMBA]

@elsimmons2 and anyone can call and check, silly :)

[axe863]

You are so profoundly deluded. Your ignorance of the law will not save you from the IRS. Ignorance of the law is not an excuse. I know for a fact that most of the things mentioned are in fact TRUE.

[elsimmons2]

@etaylor38

I agree this interview is so fake, a 15 year old can see through it !!!!!!

[PeterFullerMBA]

@elsimmons2 obviously you have the mentality of a 15 year old :)

[elsimmons2]

@PeterFullerMBA Hey why are you so mad. I guess it's because you were exposed. People get angry when they get caught in a lie!!!!!

[PeterFullerMBA]

@elsimmons2 What anger? It is obvious that you do not understand the point of the video. Caught in what lie? I am on here using my real name and real picture talking to an employee of the IRS who I give you complete details on how to call up and verify. On the other hand you have an agenda to illegally take people's money, what do they call that, criminal :)

[elsimmonsII]

@PeterFullerMBA Since I have the mentality of a 15 year old, I see you here promoting that Cash Gifting is so illegal just so you can get people to go to your site to buy what you are selling. This goes to show that you are promoting a business model that does not work or you wouldn't be spending so much time calling cash gifting a crime. "The business model that you promote is the biggest scam of them all.

[PeterFullerMBA]

@elsimmonsII - they say a good defense is to go on th offence, but in your case it does not work :) - you have no idea what my business model is.

[elsimmonsII]

@PeterFullerMBA So, again, if the business you are promoting on your website are so successful, why do you spend so much of your time convincing others what is illegal. Wow, this is coming from someone with a mentality of a 15 year old!!!!

[PeterFullerMBA]

@elsimmonsII - I did this video almost two years ago and yet here you are still blathering on :) - so when are you going to do some basic research into your business, you know, where you actually look at court cases and the law - building a cash gifting business is like building a house of cards.

[65adela]

ok, then lets set up the scenario what if

I do join a cash gifting program or

business and I pay my taxes on it, still

ill be making money and put food on the

table, just like you said on the video, any

income to IRS would be considered a

"business" right, from there I will have my

office expenses, internet, cell phone

etc.

[PeterFullerMBA]

True, but you then run into the problem that cash gifting is a pyramid scheme.

[dragonhead2010]

This my last comment!

1. LOL u called the same place that Illegal takes your money; about a gifting program that u say Illegal takes your money.

[PeterFullerMBA]

What is really funny is that you buy into the illegality argument regarding the IRS when the top courts have disagreed with you for years, that truly is a LOL

[dragonhead2010]

wow u got gifting  there. nah i was faking.

1. u call gifting a organized business in some ways u right; but don't forget religion can be called the same 2. Instead of the word "gift" they call it "donate" I can't tell the difference.

2. U made a call 2 one of the biggest gifting program in America. which is not government agency by the way.

[PeterFullerMBA]

You were not faking, just not understanding the point of the video

[MakingMoneyMagazine]

Finally someone who asked the IRS the right questions. Thank you for the real information on cash gifting.

[MUTVexxxposed]

Rather that than the traditional old way. See you at the top...

[MUTVexxxposed]

I can care less. The title was enough for me. I said my peace on this issue... and im out! MILLION DOLLARS in '10 BABY!

[PeterFullerMBA]

I wish you the best, but the reality is you are trying to build a business on shaky ground.

[MUTVexxxposed]

Im about to start cash gifting... and when im making 30,40,50k a month, and you'll still be a broke complainer on youtube mad because you couldnt take advantage of a simple opportunity, ill be laughing at you. Stop spending so much time on this... if you think its not legal, then keep it moving and live the average plain way you've BEEN living.

[PeterFullerMBA]

Wow, you are setting your sites low :)

It is obvious you did not understand the point of the video.

[jcortez65]

Ive done some research on these cash gifting programs and im objective about it I just dont understand why are they picking only on this eliteresurrected when theyre are hundreds of these, 100;s

Abundantlife, g1g4,up1,ezwealth solutions,global, taxis,planes, if its so

illegal why hastnt the FTc stepped up and closed down every one of them.

The good thing i see is that elite has been around for 14 years and doesnt have their people saying that its a fraud

I hear other people but nobody else.

[PeterFullerMBA]

Many make the mistake by thinking "why hasn't the FTC closed them down". Why is prostitution so blantantly advertised and not shut down? The answer to both questions is the same.

[pacazohegara]

Thank you for posting this. I had someone approach me on this yesterday. The whole thing is simple in my book. The question of cash gifting as a taxable event or not is irrelevant to the discussion. Anything like this with no product flow and no retail sales outside of the organization is an illegal pyramid. Period. Wake up people - this is a new twist on an old scheme.

[PeterFullerMBA]

Hello everyone, I do appreciate the comments, even the ones that do not agree with me.

All I ask is that you understand what the video is about. It is not about the legality of cash gifting schemes.

It is about whether or not the tax code legalizes gifting.

And the answer is "No". The tax code has nothing to do with the legality of a revenue source. Therefore you cannot use the tax code to legtimize cash gifting.

All the tax code does is tell you if something is taxable or not.

[billsarebullyesyes]

wow! i wish you took this energy and applied it to the federal reserve stealing this country blind. and the illegal practice of taxing personal income that was originally meant for businesses & corp.

hope you checked out aaron russo's film

[PeterFullerMBA]

Relying on Aaron Russo for tax advice is like having me do surgery on you :)

[billsarebullyesyes]

doing surgery requires special training & skills. finding the truth ONLY requires READING & DUE DILLIGENCE. a. russo informed us, it's up to us to take it from there...so imo what a PISS A** REPLY.

keep focusing on gifting when everything you worked hard for is being stolen from you ...DONE

[PeterFullerMBA]

If you had done your due dilligence you would have determined that Russo did not know what he was talking about.

Finding the truth as you state it does require special training when it comes to taxes. Russo's only experience with taxes was on the short end, like some of the people he quoted in his doc.

In the end, people who try to use Russo's arguments in court lose and they do end up having to pay taxes. Same for cash gifters, everytime they get caught they settle or lose in court.

[billsarebullyesyes]

and if you do your due dilligence you will find out taxes were created for business & corp income - not personal. also that fed tax we pay go to england to pay the bankers (fed reserve) taxes on fiat money that is printed ( which is not backed by any precious metals) try getting out of the box you live in & learn about the REAL world & not the one created for you to believe. let me be more specific...DONE WITH YOU !!

[PeterFullerMBA]

It does not matter what taxes were created for in the beginning, only what they can be applied to now.

This is well established by the courts.

You do realize that for a modern economy to work it is not needed that money has to be backed by precious metals.

You cannot eat gold, heat your house with gold etc etc. Gold only acted as a currency because people placed value on it. It is the same with paper or electronic money today.

[MicrosoftIndesign]

lol it is perfectly legal. and the guy that went to jail for it was because he used it in bad ways, it was designed for poor people who want to get out of troubles and help others. it is called give and recieve. or how about this, how about you come up with a perfectly (legal) system or buisness or whatever and then we all join and worry free???? how does that sound???

[PeterFullerMBA]

Your comment clearly shows you did not understand the point of the video.

The IRS can never be used to determine if a revenue source is legal or not.

Cash gifting is kinda like prostitution.

Proceeds of prostitution is taxable.

Prostitution is everywhere and only a very small percentage of participants are ever charged.

A very small percentage of those who participate in prostitution are charged, found guilty and end up in jail.

See the similarities?

[PeterFullerMBA]

Why is is that when someone argues a point or disagrees with something their comeback is for the other person to have to do something or prove something.

You think cash giving is legal, so be it, However you are ignoring the existing laws and course cases.

Everyone relies on signed letters of intent which any good lawyer would tell you is worthless. You cannot hide an illegal act by signing a letter that says you are not doing that illegal act.

[MicrosoftIndesign]

look, in this country unfortunatley the law is corrupt, cops are corrupt, lawyers are corrupt, the fucking government is corrupt. Papers never meant shit. You and I know that for a fact. Do not even make me argue on this one, all I am simply saying is that finally a group of people who want extra income help more people and show them how to do it. Thats it!!! Sorry if I talk to much. I am not trying to prove anything here. Look find me a legal act according to you and I will not reply anymore

[PeterFullerMBA]

The laws in question are the federal and state laws for pyramid schemes. I realize that many try to state that their gifting scheme does not fall under those laws because of waivers, or that their plan does not have a pyramid shape or that no one expects anything in return. The fact remains that in those schemes you can only make money if you recruit new members.

[seethingenergyL]

Thank you very much PeterFullerMBA

[zane757]

That dident prove nothing but u have a big mouth and wont let the man talk, however i am not douting than some if not most cash gifting programs are scemes but not all of them are.

[PeterFullerMBA]

Sure it does. The video clearly illustrates that the IRS does not determine the legality of a revenue stream. Illegal revenue is still subject to tax.

[morecash4unow]

over 6 times you said recruit we invite we don't earn money,and thank you, you helped me these mlm program ask me find 3 that find 3 that 3 order loads of junk we never use so thank you CASHGIFTING is way to go over 27 yrs still going strong

[YBSformula]

Nice video. Regardless if a gift-giver signs a letter stating they don't expect anything in return, when a "reasonable person" looks at the system...they would conclude that the gift was given because the person wanted to also receive gifts...therefore they gave the gift.

You'd think these programs would've been closed down by now by the government if it was illegal...or it might not be a big enough problem for them to tackle at the moment.

[Dean19693]

cashrush said it all. To read what I would have replied read his comment again.

And of course the irs won't say it's legal!!!

THEY SIGN A NO EXPECTATION OF RETURN FORM!!

What's your reply to that?

[PeterFullerMBA]

My reply is the same.

The point of my video is that you cannot use the tax code to determine the legality of an activity.

The proper forum for the legality argument is within the context of local state laws, postal regulations and the FTC.

[seethingenergyL]

Have you ever watch the documentary by Aaron Russo Freedom to Fascism about the IRS? So we can be clear what is the code in black&white or the specific law that says a cash gifting is illegal and please don't point to the FTC website about the ponzi or pyramid scheme. If you can tell me the code you win all the people your are trying to protect and certainly I win also because you just protected me from entering a illegal activity. Thank you very much!

[PeterFullerMBA]

The problem is that you, like many, do not understand the tax code. The tax code does not state that any revenue source is legal or illegal. That is not the purpose of the tax code. The tax code's only purpose is to state what is taxable and what is not taxable.

My point, you cannot use the tax code to claim that a certain revenue source is legal.

[seethingenergyL]

You ever watch the documentary by Aaron Russo Freedom to Fascism about the IRS? I'm also sorry I didn't make it clear. When I was talking about code I was not referring to the IRS code the reason I point out that documentary is so people know that the IRS is irrelevant when it comes to cash gifting. I will not argue about the IRS watch the the film and then tell me what you think about the IRS. My real question is what Legislature or codified law says this is illegal in California or Federal

[PeterFullerMBA]

Many times cash gifting schemes are organized as not for profit. I am not familiar with any cases on those yet, however one well know cash gifting scheme was taken to court, the originator was found guilty and received a jail term. They are the one that has now tried to organize as a not-for-profit corporation.

[PeterFullerMBA]

Do you actually believe that?

It is like the mob talking about a package being delivered :)

However, the point of my video is that you cannot use the tax code to determine if an activity is legal or not.

The argument that money you receive through organized cash gifting is not taxable is a separate argument.

[seethingenergyL]

Could this be the code

849.091? Please we must be specific and not vague when answering this question?

[seethingenergyL]

sooner or later this question must be answered! We can not ignore it this it will help out lots of people who are actually thinking of joining such activities. I care what people have to say about this so please respond

[cashrush]

WE all sign a letter saying we expect nothing in return and we do not recruit we invite people to a private gifting club were we explain to each and every person that they possibly may not ever recieve a gift THATS what makes it legal and it totally refutes your own video the reciver is not liable EVER

AND non solicited

[MicrosoftIndesign]

cashrush you are correct, the this peter guy failed to explain that the everyone signs a letter or statement saying they do not expect anything in return and that it is a gift. how in the fuck can that be a buisness? the person can just say hey you know what this is not for me its that simple. and we do invite people and never force anyone, maybe this peter guy was just unsuccesful or ripped off by someone who uses the system in a bad way. I make alot of money, and am not going to stop.

[hjhjugyjh]

The courts do not care if you signed a letter of statement, they only care about the intent. And the intent in cash giving is very clear.

[MicrosoftIndesign]

well I enjoy helping people feed their family. if that is illegal to help people feed their families and Im going to keep breaking the law.