if you get a million from anyone and dont report it its illegal. even if its gift for nothing
At the federal level, this is wrong.
If the gift is under $15K, then it does not need to be reported or accounted for. (Some states have their own gift tax rules. NY has no lifetime gift tax, just a bad estate tax rule.)
If it is a gift of OVER $15,000.00, then it must be
reported BY THE GIVER, but no taxes need be paid on it, as long as it is less than $11.5M (cumulative life time total).
IF a gift tax is due, it is the
GIVER who pays it, not the receiver. The receiver of a GIFT owes
no tax liability for the transferred asset. Its a gift, not income or compensation.
When there is a condition to the "gift", such as
go to Duke and play basketball, and I will give you money, that is, IMO, compensation, not a gift, and is, therefore, taxable.
There may be some tax recapture of previously non-taxable gifts which are made within 3 years of death (gift causa mortis), but only if the recapture of those gifts bring the estate into a taxable amount.)