As we reported, convicted felon Teresa Giuidce appeared as the celebrity guest at Kim D’s Posche Spring Soiree on March 19th. The event turned into a big controversy because Teresa demanded guests pay cash only for her autograph and a photo. Guests paid $25.00 in cash only and were not issued receipts for their purchases.
Media outlets went into a frenzy reporting the incident which included video footage of Teresa stuffing cash in paper bags. Nancy Grace blasted Teresa for her obvious shady activities. The press had a field day with the story because Teresa pleaded guilty to several counts of fraud on March 4th. The thought that she recently pleaded guilty and had the gumption to commit more fraud was especially troubling to many.
Teresa quickly jumped into “cya” (cover your ass) mode by claiming she would donate $400 earned from the event to charity.
A few days after news of the incident broke, Teresa tweeted , “As I so often do, I’m donating all proceeds from selling my book at a recent event to the charity dear to my heart Nephcure Foundation.XO”
As I so often do, I'm donating all proceeds from selling my book at a recent event to the charity dear to my heart Nephcure Foundation.XO
— Teresa Giudice (@Teresa_Giudice) March 26, 2014
NephCure is a foundation that supports kidney disease research. Teresa only started supporting the charity after her stint on Celebrity Apprentice.
Teresa’s claim that all monies (cash) collected will go to the Nephcure Foundation makes no sense and is highly questionable. According to the IRS, the person that purchased the book/autograph/pic would be required (by law) to be issued a receipt for their donation(s). However, Teresa’s team never issued receipts for any of the purchases. In the following video you can clearly hear the lady behind the table say “Cash, no credit cards.”
All About The Tea reached out to a tax attorney who specializes in tax law and routinely deals with the Internal Revenue Service (IRS).
Here’s what we learned:
When a product/service is sold for a fee, New Jersey Commerce law requires a receipt to be issued for that transaction. New Jersey statue requires sales tax is collected and reported on each transaction. IRS requires all money collected be taxed as earned income.
When Teresa files her 2014 tax return she will be required to report all monies (cash) collected from the event as earned income. Claiming the cash collected was donated to charity is illegal and violates New Jersey state and federal tax laws.
Does Teresa think she is above the law and is fully aware of her shady dealings? Let us know what you think. Sound off in the comments.