Gift Tax Evasion?


J

Jeff Wisnia

After a coffee break discussion our curious minds want to
know whether the gift tax is frequently avoided by people
who want to transfer more than the tax-free limits by
"laundering" it through gifts to several closely related
family members who in turn make gifts to the intended
recipient later that year.

It would seem that practice would be difficult for the tax
man to detect and prove.

Jeff (Who wouldn't be asking this question on a newsgroup if
he had any intention of trying to get away with it.)

--
Jeffry Wisnia
(W1BSV + Brass Rat '57 EE)
The speed of light is 1.8*10^12 furlongs per fortnight.

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
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S

Stuart Bronstein

Jeff Wisnia said:
After a coffee break discussion our curious minds want to
know whether the gift tax is frequently avoided by people
who want to transfer more than the tax-free limits by
"laundering" it through gifts to several closely related
family members who in turn make gifts to the intended
recipient later that year.

It would seem that practice would be difficult for the tax
man to detect and prove.
The times the IRS has detected it, they collaped the
transactions and imposed the tax.

Stu

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 

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