Is that freaking insane? Celebrities will have to report the value of the gifts found in their Oscar goodie bag on their tax returns this year. To make sure it happens, the IRS is including a little note in each bag. What a way to put a cloud over the evening!
The value of the gifts must be reported on a celebrity’s tax return.
“There’s no special red-carpet tax loophole for the stars,” Internal Revenue Service Commissioner Mark Everson said Thursday. The Academy of Motion Picture Arts and Sciences, in an accord with the IRS, agreed to pay taxes due on gift bags handed out through 2005. But responsibility for paying taxes on this year’s swag falls on the recipients.The
agreement marks the beginning of an IRS effort to reach out to the entertainment industry with reminders that award show gifts and promotional giveaways are considered taxable income. (source)