The Internal Revenue System (IRS) has started an "outreach" program to assist entertainment industry stars in dealing with -- as in remembering to pay -- the tax liability involved with those nifty gift bags they get at awards shows and other promotional events. Handed out at dozens of events every year, the gift bags typically contain high-ticket items like deluxe trips, home electronics and jewelry.
According to the IRS, the Academy of Motion Picture Arts and Sciences voluntarily approached the IRS shortly after the 2005 awards presentations seeking to clarify the tax issues surrounding the gift baskets and to make sure tax obligations were met. As to the stars' tax obligations resulting from gift baskets handed out prior to 2005, the IRS states that they had reached a "mutually satisfactory agreement" with the Academy.
"There's no special red-carpet tax loophole for the stars," said IRS Commissioner Mark W. Everson in a press release. "Whether you're popping the popcorn, sitting in the audience or starring on the big screen, you need to respect the law and pay your taxes."
Also See: Oscar Winners Must Pay Taxes, IRS Warns
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