Gifts are not taxable income unless they past the limit. And then they are to be paid by the gifter.
In order to hide that kind of income she would need to work in cash or non-cash gifts. But she says she is building a house with her “mistress income”. That means she is getting large amounts of money. And even if that is in cash, the IRS will notice a bank account which is growing beyond any declared income.
She is either leaving out a large part of the story, or she is lying, or she is in for a world of hurt when the IRS comes knocking. And they will.
“She is either leaving out a large part of the story, or she is lying, or she is in for a world of hurt when the IRS comes knocking”
Or all of the above.
Actually, the giver is the one who pays any taxes, and then only after a humongous lifetime exclusion. I doubt any of her pals stick around long enough to entangle her in the IRS, not to mention that they are not likely to declare the gifts at all.