@tax_info_seeker987 wrote:
,,,,wouldn't it be better if there is a requirement to report all gift money, even smaller amounts, on tax return upfront, so there is less confusion or chance of audit later?
Perhaps, but only annual (total) gifts to any one individual that exceed the exclusion amount (currently $16,000) are required to be reported by the donor; donees (recipients) of gifts do not have a reporting requirement (other than in certain, limited, instances).
See https://www.irs.gov/instructions/i709#en_US_2021_publink16784xd0e649
