[Medium FormatPro]

could one theoretically "get in trouble" for using the gift option to pay for goods

I'm a type of expert on this one...

The answer is simple; Yes, one could get into trouble for using the gift option to purchase any type of product and/or service.

The answer is also coming in two forms. Even something as trivial as not-quite expert H&R Blockhead iis clearly asking it's customers about any online purchases for items such as taxes (mostly state taxes). H&R is also instructing/coaching their customers about any online purchases, and the need to keep basically every receipt of such. Included in that category is also those gift item paypal transactions.

And here is where it takes a really bad turn. Anyone here have any chldren away in college or the like.

New banking regulation effective quite soon. That one will not be able to give their own children (each individual one, not as a group) any type of financial gift in excess of 1k per year - without substantial tax penalties.

And to elaborate further and to answer your question more specifically... Could one get into trouble? It depends. There are actually people out there that could technically get into trouble based on the frequency of use or the amount. This would be especially so if one were trying to dodge on business related taxes - in which case... There would be a better than average change that the IRS would eventually catch up with a business tax dodger; which would spell out a rather large audit - and the possible need for a federal tax atty - take a guess at how much those cost per hour - even well before going to court.

Might I also add; that the american intrnal revenue service is one incredibly powerful entity. The agency does not need to inform you in advance before seizing any financial account or instrument, even so far as property is concerned.

But then again, given the amounts of people whom have also missed on iitems such as state taxes; perhaps they might look the other way up to a point - perhaps.

Given the recent control and privacy issues with government... I can assure everyone out there that there is no such thing s privacy anymore. Also that the united states government does in fact have the ability to have insight into every persons financial life as well

[Blue]

To all our Marketplace sellers: please be advised that updates (shown in bold) have recently been made to our Marketplace listing regulations in order to keep our Marketplace safe and to comply with PayPal policies.

Quote:
An asking price or price range must be posted (you may ask for a best offer in addition to your stated price, however) You may not solicit payment to be made via PayPal as a gift. We strongly discourage buyers from accepting offers that request gift payments.



Sellers typically ask for gift (also known as personal) payments in order to avoid being charged a transaction fee by PayPal. By sending gift payments, buyers surrender their right to PayPal Buyer Protection for that particular transaction and consequently limit the number of things that can be done in the event of a dispute.

All future Marketplace listings must be in compliance with this new rule to avoid risking deletion by the site staff.

[Medium FormatPro]

Sellers typically ask for gift (also known as personal) payments in order to avoid being charged a transaction fee by PayPal

And to also dodge on taxes - or at least try to