The Hollywood awards season is in full swing. The Golden Globes kicked off the season on yesterday with designer duds making the news. The Associated Press Service wasn’t the only "service" watching – the IRS was likely watching, too. Why? The oft-touted gift bags.
According to the IRS, an agreement has been reached with the Hollywood Foreign Press Association on the tax treatment of the bags, which became an issue last year.
What the IRS has characterized as an "outreach program aimed at the entertainment industry" – you know, since movie stars apparently can’t afford tax advisors like the rest of us – has resulted in a promise by the HFPA to ensure that forms 1099 are properly issued. The stars are responsible for their own reporting of income attributable to the gifts in the bags. Gasp. The price that you pay for walking the red carpet…
