Oscar Winners Must Pay Taxes, IRS Warns

Winners of Sunday night's Oscars goodie-bags, typically valued at over $100,000, had better not try any stunts or costumes to avoid paying income tax on them, warns the IRS. The gifts, often valued at over $100,000 are taxable income and must be reported, warns IRS Commissioner Mark W. Everson.

"As the world watches the glamour and glitz of the Academy Awards, it’s important to keep in mind that movie stars face the same tax obligations as ordinary Americans," said Everson in a press release. "We want to make sure the stars ‘walk the line’ when it comes to these goodie bags."

"This has become big business for companies promoting their products. These things aren’t given without pride and prejudice. There is a tax implication for them. We just want to make sure no one crashes into the tax code," Everson added, not acting a bit.

Also See:
How to Avoid Income Tax Preparer Fraud
About Oscars Full Coverage