Giving someone else money as gift

[albert8]

What is the name of your state? Texas

I read some earlier posts in this forum but still I need some clarification.

I am a judgment debtor from Texas. I am visiting my native country, Philippines. I want to bring (carry) some cash (less than 10,000) to my sister and this cash will be given as a gift to my sister by her husband’s sister who is in Philippines. Once I bring that cash and give to my sister, she deposits in her account. My sister and my sister's husband sister, both, requested me to help them by carrying this cash from Philippines and give to my sister: this cash does not belong to me at all. My passport will prove that I made this visit to Philippines.

I have two questions:

(i). if IRS come after my sister asking if that cash deposit is unreported income, and I give an affidavit stating that I carried that cash from Philippines (as a gift given to her by relatives in Philippines) and gave that cash to her then will it be enough to convince the IRS that the money is not an income to my sister? If not, what else I (or my sister) need to do

(ii). Whether carrying and giving that money (belongs to someone) to my sister will come under fraudulent transfer https://statutes.capitol.texas.gov/Docs/BC/htm/BC.24.htm if my judgment creditor ever learned that I carried that gifted cash from Philippines to give to my sister? If so, how to prove that it is not fraudulent transfer?

 

[LdiJ]

What is the name of your state? Texas

I read some earlier posts in this forum but still I need some clarification.

I am a judgment debtor from Texas. I am visiting my native country, Philippines. I want to bring (carry) some cash (less than 10,000) to my sister and this cash will be given as a gift to my sister by her husband’s sister who is in Philippines. Once I bring that cash and give to my sister, she deposits in her account. My sister and my sister's husband sister, both, requested me to help them by carrying this cash from Philippines and give to my sister: this cash does not belong to me at all. My passport will prove that I made this visit to Philippines.

I have two questions:

(i). if IRS come after my sister asking if that cash deposit is unreported income, and I give an affidavit stating that I carried that cash from Philippines (as a gift given to her by relatives in Philippines) and gave that cash to her then will it be enough to convince the IRS that the money is not an income to my sister? If not, what else I (or my sister) need to do

(ii). Whether carrying and giving that money (belongs to someone) to my sister will come under fraudulent transfer https://statutes.capitol.texas.gov/Docs/BC/htm/BC.24.htm if my judgment creditor ever learned that I carried that gifted cash from Philippines to give to my sister? If so, how to prove that it is not fraudulent transfer?

Why would someone IN the Phillippines need you to carry cash from the United States to the Phillippines? That does not make any sense, logically so right there you could have a problem convincing the authorities that your story is real/true.

However, if you are carrying cash that came from someone else's bank account, and giving it to your sister, then the authorities would have no reason to connect you with the cash in the first place...or you are leaving out details that could be important.

 

[albert8]

I am planning to carry that money from Philippines to the USA (I live in USA and now I am visiting Philippines ): not from USA to Phillippines.
My sister lives in USA and her husband's sister lives in Philippines and that lady wants to give that gift to to my sister (by using me to carry it) to bring to USA and give to my sister.

 

[LdiJ]

I am planning to carry that money from Philippines to the USA (I live in USA and now I am visiting Philippines ): not from USA to Phillippines.
My sister lives in USA and her husband's sister lives in Philippines and that lady wants to give that gift to to my sister (by using me to carry it) to bring to USA and give to my sister.

Ok, then there shouldn't be any reason for a judgment creditor to even know about the cash. Just don't do anything foolish like deposit it into a bank account or anything like that. Give it to your sister and let her deal with it how she sees fit.

 

[albert8]

Thank you. My sister wants to deposit that cash in her bank account as she needs to use for buying a property.

(i). if IRS comes after my sister asking if that cash deposit is unreported income, and I give an affidavit stating that I carried that cash from Philippines (as a gift given to her by relatives in Philippines) and gave to her then will it be enough to convince the IRS that the cash deposit is not an income to my sister (but a gift from Philippines)? If not, what else I (or my sister) need to do.

(ii). If my judgment credit ever notice the affidavit (mentioned above) then will I come under fraudulent transfer https://statutes.capitol.texas.gov/Docs/BC/htm/BC.24.htm?

 

[adjusterjack]

Albert, here's an idea. Why not have the giver get a chashier's check made out to your sister (marked gift) instead of playing foolish, unnecessary games that are sure to convince the authorities that you are laundering money and your creditor that you are trying to hide money?

Your sister can make a copy of the check before depositing it and keep it in her files if there's ever a question, which is unlikely.

 

[Taxing Matters]

Thank you. My sister wants to deposit that cash in her bank account as she needs to use for buying a property.

(i). if IRS comes after my sister asking if that cash deposit is unreported income, and I give an affidavit stating that I carried that cash from Philippines (as a gift given to her by relatives in Philippines) and gave to her then will it be enough to convince the IRS that the cash deposit is not an income to my sister (but a gift from Philippines)? If not, what else I (or my sister) need to do.

The amount of cash you brought into the U.S. is below the reporting requirement for Customs. Did you include that on the customs declaration? If the answer is no, then the IRS won't know you had anything to do the cash. And as your sister is depositing less than $10,000 cash to her account, it is unlikely the bank will report that to the IRS either. In short, it's unlikely either of you will get contacted by the IRS about it. If there is an IRS inquiry over it, the affidavit (if drafted well) and a copy of her bank account with the deposit recorded may well solve the problem. But it would initially be up to the service center examiner to make that call, and there is no predicting with 100% accuracy what some unknown examiner will think about it. But only worry about it when/if an inquiry every comes about.

(ii). If my judgment credit ever notice the affidavit (mentioned above) then will I come under fraudulent transfer https://statutes.capitol.texas.gov/Docs/BC/htm/BC.24.htm?

The judgment creditor won't be able to see it unless the IRS matter goes to court and the affidavit is entered into evidence in court. And then the creditor would have to know about your sister's IRS protest and connect it to you before it could even begin to consider any fraudulent conveyance action.

 

[zddoodah]

Am I the only one wondering why there are so many of these "I want to give a cash gift just under $10k and am concerned that the IRS might think it's income" posts?

I am a judgment debtor from Texas. I am visiting my native country, Philippines. I want to bring (carry) some cash (less than 10,000) to my sister and this cash will be given as a gift to my sister by her husband’s sister who is in Philippines. Once I bring that cash and give to my sister, she deposits in her account. My sister and my sister's husband sister, both, requested me to help them by carrying this cash from Philippines and give to my sister: this cash does not belong to me at all.

What possible reason could there be why your sister's husband's sister wouldn't just wire transfer the money to your sister? Or write her a check (or cashier's check)? A cash by courier transaction is probably the dumbest way to do this.

if IRS come after my sister...will it be enough to convince the IRS that the money is not an income to my sister?

There is no possible way to know whether some document that doesn't exist will be sufficient to convince someone of the truth of whatever the document might say.

Whether carrying and giving that money (belongs to someone) to my sister will come under fraudulent transfer https://statutes.capitol.texas.gov/Docs/BC/htm/BC.24.htm if my judgment creditor ever learned that I carried that gifted cash from Philippines to give to my sister?

No.

 

[Just Blue]

No, @zddoodah , you are not the only one wondering about that.

 

[quincy]

I am wondering how to become a member of a family that gifts $10,000.

 

[LdiJ]

There are a lot of people in other countries who don't trust banks and want to deal in cash only. Therefore I don't find this so unusual. It may be that the OP is playing games, but it is not a given that he is.

 

[Bali Hai Again]

No, @zddoodah , you are not the only one wondering about that.

Ditto!

 

[Bali Hai Again]

I am planning to carry that money from Philippines to the USA (I live in USA and now I am visiting Philippines ): not from USA to Phillippines.
My sister lives in USA and her husband's sister lives in Philippines and that lady wants to give that gift to to my sister (by using me to carry it) to bring to USA and give to my sister.

Police could confiscate the large amount of cash you are carrying during a traffic stop until you prove it is not tied to criminal activity.

 

[adjusterjack]

Am I the only one wondering why there are so many of these "I want to give a cash gift just under $10k and am concerned that the IRS might think it's income" posts?

No, you're not the only one.

These posts do seem to come from foreigners.

LdiJ's comment could be right on the money.

(Pun intended.)