Knowing What You Need to Know About Cash Gifting Programs
Making money online is highly conceivable, but it is extremely risky. Among the biggest online money-making scams today are cash gifting programs. Before you look for opportunities to generate income online, you need to understand the concept behind these con-programs first.
It doesn’t lie in the name
Because of the growing awareness of cash gifting scams worldwide, most of these schemes have restructured themselves to lure more unsuspecting victims. Among the most popular masks are “financial support systems” for certain exclusive groups, like women. Sometimes, these scams also try to package their strategies in masculine taglines to lure men in. Some of these schemes also appeal to minor cultural groups. In other words, this scam can practically take up in any form.
How it usually works
You can actually spot a cash gifting scam from a mile away if you’re wise. The signs include monetary exchanges that do not include any services and/or items. Remember, that’s where these scams get the name, in the first place. The IRS does not tax cash gift items, provided that they were given without any items or services in exchange.
Being the smart money-driven alecks that they are, the promoters of these cash gifting schemes discovered a way to generate untaxed revenue without lifting a finger. All they needed to do is to convince people to enroll more people and “invest membership fees” to generate “passive income” for everyone.
If the recruitment scheme sounds familiar, it’s because it borrows largely from the pyramid schemes of a few years ago. As in those pyramid schemes, only the upper 12% of the structures were able to walk away without any monetary scratches. When the pyramid finally “fell”, 88% of the base was robbed of their investments.
Common sense
We’ve all heard this before, but it doesn’t seem to hurt if we stress it again: if the deal sounds ridiculously good, it doesn’t come without a catch. Any monetary exchange between strangers that doesn’t involve services and items is most likely a scam, unless they’re in the form of donations for the poor or needy.
If the cash gift you’ve received is from a family or friend, and it’s for a special occasion, it can legally go without being taxed. It’s no issue. But if it in any way resembles a pyramid scheme, you should already be wary.
If it does involve the exchange of a service or an item, then it’s legally a revenue or income. It should be detailed and reported to the IRS, and it should be taxed accordingly. If you’re working for clients online as a freelancer or an independent contractor, you should make sure that you pay your dues, or else you could get into serious trouble with the IRS.
Double check
Before risking it on any business online, you should research on the company or person’s backgrounds. As much as you’re trying to “sell yourself” to prospective clients online, you should also make sure that they’re paying clients. Never be too cautious or naïve to ask for referrals. As a homebased business person, always inquire and verify the means of transaction with every client and/or agent you meet online.
