Not to wade too far into the tax-code weeds, but it depends on what 1099 the "giver" sends to the IRS. The tax on gifts (Gift Tax) is generally paid by the donor. IOW, if you receive a gift from your wildly rich uncle of $1M, then the uncle also owes (roughly) $500K in US federal gift tax. The gift is reported on the uncle's tax return.
Now, Oprah has a choice. She can report the trip to her audience as a "gift" - where she is responsible for the tax, or as a "prize" - this is where the recipient would be liable for the tax. It would be then recorded on the recipient's tax return, and the market value of the prize would be counted as "income".
Thank you for that clarification. So all those dollars people earn on game shows, and all the cars, trips, furniture, etc. that they win...those are “prizes” and the winners pay the tax, right? Just like winning the lottery. That is what I always thought. I doubt the game shows consider them “gifts.” I would be surprised if Oprah pays the taxes for 300 for a flight and stay in Australia. But who knows, she might consider it a worthy cause for her own selfish PR...when so many are out of work and could use that money for food.