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@jomo13 

While I did not consider the possibility of fraud (you said this was already completed transaction) I do agree with the points raised by @rjs .  This isn’t really a gift transaction. But I’m not sure what it is.  If you were acting as a business agent, I’m not sure how to report that. I don’t think you can harm yourself by reporting it as a gift.  And I think if you don’t report it at all, the IRS may want an explanation for the $26,000 of incoming funds that were deposited in your name.   If you want someone’s opinion to rely on in case the IRS asks questions, you would have to hire your own expert and pay for that opinion. We are just doing the best we can.