What are the tax rules regarding assigning income to another tax payer?

Alissa: What are the tax rules regarding assigning income to another tax payer?
What are the rules regarding a tax payer assigning income from personal services rendered to another tax payer? Ex. A football player assigns his son 5% of his income. Can you do that and how would that affect his taxes?

Answers and Views:

Answer by bostonianinmo
Since the son did nothing to earn the money that dad was paid it’s a gift from dad and dad may need to file a Gift Tax return.

Sonny has no beneficial interest in the income so it’s not income to him.

Answer by Loves Christmas Lights
Banks are a great wealth of knowledge, after the account is set up for the child and the terms set, and money starts flowing into it, that cannot be removed without tracking, the bank can assist on the form to use for that money that is untouchable by the parent. (Accounts set up like this have many rules, income tax will be paid on any money given to anyone)so there is no way to hide income, some income can have its taxes defered. Paying a proffessional to do the taxes the first year these arrangement are set up, is well worth making sure it is set up correctly, any mistakes and the adult will have fines and late fees for any monies owed. The irs is not forgiving. You can also get free advice annonymously by going to www.irs.gov and finding the toll free number they can answer alot of questions.

Answer by dvdclarke
call the tax agency

Answer by Lisa C
Cheaters never prosper! Do your own work Alissa!

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