Quote Originally Posted by Jim Ganzer, "IWB" View Post

Lance Thomas came to light because the authorities were involved - a sudden payoff to the jewelry store ended that. But why won't the authorities/feds/IRS get involved? Thomas' $90k necklace - where did the down payment come from? He had cash, likely a gift. If I got a gift of $35 let alone $35k, somehow some way the IRS would be 'adjusting my taxes'.
No they wouldn't. The IRS doesn't focus on the recipient of the gift, but instead focuses on the donor who is responsible for filing the gift tax return for a gift in excess of $14,000 annually. That means the player is not responsible for reporting the gift. Now, if the amount received was in return for services provided (playing basketball for a particular school) or as a bribe to do something (such as sign with a particular school) then it's different. Let's be clear with language here. The payment to Lance Thomas may have constituted a bribe to keep quiet (law enforcement then should be involved), or it could have been considered compensation for services such as playing at Duke which means it would be taxable to him.