If an American receives a gift from a non-American, it has nothing to do with the gift tax. However, if the gift received by the recipient exceeds $654.38 million per year, it needs to be disclosed and declared in the tax form. The tax inspection of IRS is very strict. If found, there may be jail time. However, the IRS has a problem of checking tax costs. Generally, the number of spot checks every year is only 1% of the total tax return.