Uninteresting but related:  What is your need to know, for preparing an income tax return?  One of the best ways to find trouble is to go looking for it.  Does she buy stuff from out of state?  Are you sure she shouldn't be filing use tax returns?

The gift tax question usually comes up from clients who know all about the $10K limit.  Most of them are nowhere near the estate tax exclusion.  I tell them that if they are asking me if a return is required, the answer is yes, and for a fee I will prepare it.  But if they are asking me if anything will happen if it is not filed, I tell them it is somewhat less likely than being struck by lightning on a sunny Wednesday morning.