What is the name of your state (only U.S. law)? CA
Hello. I am president of a non-profit organization and we held a benefit for a woman who has breast cancer since much of her treatment isn't covered by insurance.
We raised over $20k for her and am now waiting to disburse a check to her because they have requested that we give part of the money to her directly in the form of a check and that with the remainder of the money, we pay to her creditors. The reason why they ask this is because they would like to avoid paying taxes on the amount above the legal dollar amount limit.
Is this appropriate? Is it legal? Where can I find documentation to support whether it is or isn't?
Honestly, it sounds inappropriate to me and a red flag went off in my head the second that it was asked. Phrases pass through my head like, "Tax evasion", "fraud". Am I right?
Any insight or advice would be much appreciated.
-Karen
Hello. I am president of a non-profit organization and we held a benefit for a woman who has breast cancer since much of her treatment isn't covered by insurance.
We raised over $20k for her and am now waiting to disburse a check to her because they have requested that we give part of the money to her directly in the form of a check and that with the remainder of the money, we pay to her creditors. The reason why they ask this is because they would like to avoid paying taxes on the amount above the legal dollar amount limit.
Is this appropriate? Is it legal? Where can I find documentation to support whether it is or isn't?
Honestly, it sounds inappropriate to me and a red flag went off in my head the second that it was asked. Phrases pass through my head like, "Tax evasion", "fraud". Am I right?
Any insight or advice would be much appreciated.
-Karen