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Is it legal to receive/send “gifts” of Non-Trivial Amounts to a “friend”?
Am I right to say that no tax needs to be given for the annual ~$130k   USD, since they are considered as annual gift tax exclusion? Not only that you're wrong, but it also looks like a tax fraud, not just mere avoidance. You'll have hard time proving to any judge or jury that the gifts are "in good faith". By the way, $5 a month is below minimum wage.