Paul L. Caron

Monday, September 20, 2010

Oprah: I'll Pay the Taxes for My Aussie Giveaway

TMZ, Oprah -- I'll Pay the Taxes for My Aussie Giveaway:

Oprah Winfrey doesn't want her all-expenses-paid Australian trip giveaway to turn into the tax trap that soured her "Everybody gets a car!" show ... in fact, O is making sure none of her new "guests" pay an extra cent to the IRS.

TMZ spoke with Larry Edema from Michigan -- who was selected to be in the audience on Monday for Oprah's big giveaway -- and dude tells us Winfrey had a certified public accountant on hand to address the tax issue right after the taping. Edema says the CPA informed the group that all taxes associated with the trip would be "handled by the Oprah show," so the trip would truly be 100% free. The CPA also explained that O would cover all sightseeing costs and travel-related expenses -- including passport costs for people who can't afford them.

(Hat Tip: Sarah Lawsky, Bruce McGovern, Ann Murphy.)

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Not buying it. Her payment of related taxes simply increases the prize the audience members received. How can this possibly be judged a gift?

Posted by: MochaLite | Sep 21, 2010 7:58:32 AM

Opra's tax advisor is Paul Hogan.

Posted by: Woody | Sep 20, 2010 7:45:12 PM

But will she pay the income tax generated by paying the income tax?

Posted by: Mark | Sep 20, 2010 2:07:00 PM