IRS and Hollywood Reach Accord on Gift Bags

The IRS yesterday launched an outreach campaign to the entertainment industry regarding the taxability of gift bags and promotional items, following its agreement with the.Academy of Motion Picture Arts & Sciences resolving outstanding tax responsibilities with respect to Academy Awards gift baskets:

• IRS Outreach to Entertainment Industry on Gift Bags (IR-2006-128)
• Gift Bag Questions and Answers
• Academy of Arts and Sciences News Release

Press Coverage:

• TMZ.com:  Will The Taxman Kill The Swag Bag?
• Associated Press:  IRS, Academy Awards Reach Tax Agreement
• CNN: IRS Brings End to Oscar Swag In Settlement, Stars Owe for 2006 But Are Off the Hook for Prior Years; Academy Says No More Gifts
• E!:  Emmy's Taxing Goody Bags
• L.A. Times:  IRS Bags Oscar Swag; Film Academy Ditches Valuable Freebies Given to Presenters After the Agency Rules That They Are Taxable Income
• MarketWatch:  IRS Wins Its Own Oscar; Tax Agency, Cracking Down on Goody Bags, Gets Film Industry to Buy In
• New York Times:  Hollywood, the IRS Is Watching
• Reuters:  IRS Goes After Hollywood "Goodie Bags"
• Time Magazine:  Even Stars Have to Pay Taxes; The IRS is Cracking Down on a Hollywood Tradition: Outrageously Expensive Gift Bags
• UPI:  IRS Is Taxing Emmy Gift Bags
• USA Today:  Oscar Freebies Come at a Cost
• Wall Street Journal:  IRS Eyes Gift Bags For Proper Tax Treatment
• Washington Post:  Tax Agreement Puts End to Oscar Swag After Settlement With IRS, Academy Says It Will End the Practice