Yes, you are required to report the gift to the IRS on IRS Form 709 since the amount given in a tax year exceeds the max for that tax year that you can gift without reporting it. Take special note that you will "NOT" pay any taxes on the amount provided the gift doesn't cause you to exceed your lifetime limit of several million dollars, and neither will the recipient. All you are doing is satisfying a legal reporting requirement. The form 709 is filed separately from your tax return and you will not report the amount on your actually tax return anywhere.
