I wrote an article and someone posted a comment that I should increase my due diligence. They posted a url of a youtube video based on a phone call to the IRS.

The problem is that they did not ask the right questions.

Here is an excerpt from my article.

Some argue that cash gifting is legal because of the tax code. They even quote the sections. Those sections are about how to, or not to, tax gifts. The code contemplates legitimate gifts between family members and friends, not an organized gifting program.

If you could rely on the tax code to give legitimacy to cash gifting programs then all pyramids would be legal.

In fact the tax code expects you to claim all of your income regardless if it is from a legal source or not. Just ask Al Capone.

So you cannot look to the tax code to determine if an income activity is legal or not.

So I decided to call the IRS and actually ask the right questions.