IRS puts bills in Oscar goodie bags

[Bustem' Down]

Originally Posted by CNN

WASHINGTON (AP) -- Movie stars enjoying the lavish gift bags handed out at this year's Oscars will get some decidedly unglamorous notices: don't forget to pay tax on the windfall.

"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.

http://www.cnn.com/2006/SHOWBIZ/Movi....ap/index.html

Nobody can pinch a penny like the IRS.

[vraiblonde]

Okay, now think about that: they want you to pay taxes on something you receive as a gift. So, like, when your kid goes to a birthday party and comes home with a goodie bag, do you have to declare that on your taxes?

[kwillia]

Originally Posted by vraiblonde

Okay, now think about that: they want you to pay taxes on something you receive as a gift. So, like, when your kid goes to a birthday party and comes home with a goodie bag, do you have to declare that on your taxes?

If you are goodie bags from parties that are worth over $100k... I wanna know how to get on the same invite lists you are on...

[kom526]

Originally Posted by vraiblonde

Okay, now think about that: they want you to pay taxes on something you receive as a gift.

Wouldn't this be similar to having to pay taxes on lottery or sweepstakes winnings?

[Ken King]

If you receive a gift valued at $10,000 or more taxes are due.