WASHINGTON -- Movie stars who took ...
WASHINGTON -- Movie stars who took household those lavish gift baskets handed revealed at this year's Oscars will master some decidedly unglamorous notices: don't forget to pay tax upon the loot. "There's no special red-carpet tax way for evasion for the stars," Internal income Service Commissioner Mark Everson said Thursday. The Academy of Motion Picture Arts and Sciences, in an accord with the IRS, agreed to pay taxes becoming on gift bags handed disclosed through last year. Neither organization would say in what way much tax was owed or paid. nevertheless responsibility for paying taxes in succession the latest gifts, handed on the outside in March, falls on the recipients. They will be getting tax forms from the Academy as reminders. The agreement marks the beginning of an IRS effort to remind the entertainment industry that award point out to gifts and promotional giveaways are considered taxable income. The value of the gifts must be reported forward a celebrity's tax return. They hold as income because the IRS does not believe the gifts are given "solely public of affection, respect or similar impulses." The IRS called attention to the issue just before this year's awards. In April, the Academy vot to stop thanking award presenter and performers with gift baskets. In a statement, Academy President Sid Ganis said the baskets had traditionally been viewed as "mannerly thank-yous." moreover the Academy sought an agreement with the IRS because "we didn't want any of our presenter to obtain hit retroactively for a gift we had given them," he said. Celebrity gifting has become more lavish as marketers attempt to harness some star power to advertise their righteouss The giveaways often include enjoyment trips, jewelry and electronics. George Clooney donated his Oscar swag bag to United Way. It fetched $45100 at auction, benefiting the United Way Hurricane replication and Relief Recovery Fund. Clooney may be eligible for a tax deduction. The bag, given to presenter at the 78th Annual Academy Awards, included a BlackBerry 8700c a Kay Unger kimono and a cultur Tahitian-pearl necklace. Copyright CHICAGO SUN-TIMES 2006 Provided at ProQuest Information and Learning Company. All rights Reserved
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