I believe I remember reading that Oprah (or the manufacturer) paid the gift tax on those cars she gave away several years ago.
Whomever will pay it, it will be paid. The IRS doesn't miss much.
If you pay the tax a person owes for a gift you gave someone...isn’t that tax paying amount still considered a gift? I don’t see how Oprah paying the tax for people she gave a car, or a trip to, can be right.