Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.
My concern is that what you are suggesting here could be construed as tax evasion, a criminal activity. You are selling them a business. You cannot receive a gift for this. The penalties against each of you can be much larger than it can possibly be worth. Additionally, if they go along with this approach and call the payments a gift, it will lower the basis they will have in the business and cost them not only the "gift" amounts but tax savings as well.
All in all it does not sound like a very good idea to me. If you wish to proceed along this path please protect all of you and speak with an attorney.
Sorry I didn't reply earlier as I've been away from the computer. Ok, I understand your concern here and of course, would not consider nor would I request any help in attempting criminal activity.
But back to the original question presuming there was no business sale, would I be correct in asking if two people gave me gifts of up to $13,000 each in 2010 and up to $13,000 in 2011, that they would not have to report this since it is not above the annual exclusion amount? Thanks, XXXXX XXXXX be accepting your answer as soon as I get your reply.