I’m not saying it’s not the IRS’s position, it certainly is, but there is a pretty clear argument to be made that the IRS is wrong.
https://www.palisadeshudson.com/2013/09/if-gifts-are-not-inc...
https://www.palisadeshudson.com/2013/09/if-gifts-are-not-inc...
https://www.irs.gov/taxtopics/tc761