Golden Globe booty not so free anymoreIRS and awards sponsor settle on income taxes owed for past gift baskets to the stars.NEW YORK (CNNMoney.com) -- Nothing says Hollywood glam like an IRS tax settlement. In a statement released Wednesday, the IRS said it had reached an agreement with the Hollywood Foreign Press Association that settled "outstanding tax responsibilities" on gift bags given through 2005 to presenters at the Golden Globe Awards, which the HFPA sponsors. Such baskets typically contain a bevy of luxury items - everything from BlackBerrys to free week-long stays at Hawaiian spas - with total estimated values that can top $100,000. According to its Web site, the IRS treats the high-priced items given to presenters at awards ceremonies as income "because the organizations and merchants who participate in giving the gifts bags do not do so solely out of affection, respect, or similar impulses for the recipients of the gift bags." An IRS spokesman wouldn't comment on the details of the agreement beyond what was in the release, saying that federal law prevented the agency from disclosing taxpayer information. But according to HFPA President Philip Berk, the settlement applied to tax years 2004 and 2005. He wouldn't disclose the amount of the settlement but said that the HFPA was picking up the tax tab owed on the presenter gifts for 2004 and 2005. Presenters who received gifts from the 2006 ceremony would be responsible for paying the taxes owed, according to the IRS release. The IRS reached a similar agreement in August with the Academy of Motion Picture Arts and Sciences, which sponsors the Academy Awards. Berk also noted that there would be no presenter boxes given out at this year's Golden Globe Awards ceremony, which takes place on Jan. 15. --------------------------------------- 5 most serious taxpayer problems (Hint: None have to do with being showered with expensive gifts.) |
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