Hello again weasels,
An escrow account is nothing more than an account which is put into the custody of a third person. In other words, instead of your donors giving money directly to the person with the cancer, the money is paid to the escrow account, and then eventually distributed. Like all bank accounts, the escrow account will need to be associated with an identifying tax number, but this can simply be your own social security number. You can apply for a separate taxpayer identification number (TIN) if you wish, but it is not necessary. There will be no tax consequences to you and no reporting
requirements necessary for maintaining such an account.
As far as the person receiving social security benefits
, this will not affect his benefits in any way. Gifts that a person receives are not reportable income
by the recipient. The only time a gift is reportable is when the donor gives more than $12,000 in any one year to the same individual
. Even then, the donor is the one required to file a Gift Tax Return
to report the gift. But the gift itself is neither a tax deduction for the donor nor is it reportable income by the recipient.
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