IRS Statement on Oscar Goodie Bags
Reprinted from www.irs.gov.

The Commissioner of the Internal Revenue Service wished the Academy Award nominees the best of luck, but he reminded celebrity recipients of the six-figure goodie bags that they qualify as taxable income and must be reported on tax returns.

“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 IRS Commissioner Mark W. Everson. “ We want to make sure the stars ‘walk the line’ when it comes to these goodie bags.”

Handing out of celebrity gift bags and goodie bags has become increasingly commonplace. News reports about the “official” Oscar gifts that will be given to stars place the value at more than $100,000.

“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 said.

From April 2006

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