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RSS FeedDo Hollywood Swag Addicts need an IRS intervention?
It's okay. You can all relax. Looks like Oscar presenters, performers and nominees won’t have to pay back taxes on their past gift baskets, after all.
According to a release from the Academy of Motion Picture Arts and Sciences, they've reached a “mutually satisfactory agreement” with the IRS settling the tax obligations on gift bags up until 2005.
What a relief. I don’t know about you, but I’ve been losing sleep about this ever since I heard rumors that Academy swag bags filled with goodies, fabulous trips, services, designer stuff estimated at $75-100 grand, might be dubbed additional income and could cause a slight tax hike for celebs.
Because I’m sure these poor stars who make $10-50-100 million per movie don’t have accountants who can hide a gift basket or find a charity contribution to offset a measly hundred grand. I've also been worried about what the elimination of goody bags might do to the Hollywood re-gifting habit when all that unwanted swag is handed out on birthdays/holidays to loyal servants, maids, gardeners, hairdressers, personal trainers, manicurists, stylists, pet-sitters and yes, even friends.
C’mon, guys. You know you do it.
But gift bags will continue. And the recipients of the Oscar gift basket given at the 2007 awards will be issued appropriate informational tax forms by the Academy and will be responsible for satisfying their income tax obligations.
“We appreciate the Academy’s leadership on this issue,” IRS Commissioner Mark W. Everson says in the release. “The gift basket industry has exploded, and it’s important that the groups running these events keep in mind the tax consequences.”
“We are happy to have reached an agreement with the IRS which works to the benefit of the gift basket recipients and the Academy,” said Academy president Sid Ganis.
Ganis said that it was unclear as to when the practice of thanking Academy Award presenters and performers with baskets began, but that it was well established by the early '70s. The major stars who present awards on the show are not paid for that service, and the performers receive only the minimum union payment.
Over time these so-called “thank-you gifts” – call them incentives - became more elaborate as hotels, resorts and high-end clothing lines vied to associate their services and products with Hollywood’s most famous names.
In April, the Academy Board of Governors voted to discontinue the practice of thanking Academy Awards presenters and performers with gift baskets.
And publicity about the baskets led Everson to issue a press release three days prior to the 2006 Academy Awards broadcast which focused on gift baskets and pointed out that “movie stars face the same tax obligations as ordinary Americans.”
“The Commissioner worked some movie titles into his reminder that gave it a humorous spin,” Ganis said, “but the basic message was clear: the contents of the baskets, however much we may have been inclined to view them as mannerly thank-yous, in fact constitute taxable income. And since we didn’t want any of our presenters to get hit retroactively for a gift we had given them, we asked the Service if there was a way for us to take on the tax obligations and they were very willing to work with us.”
Whew. Well, at least that’s over with. But somebody should tell IRS Commissioner Everson that this is just the tip of the iceberg. There is more work that must be done. He may not realize that the Oscar gift basket created a virus of freeby fests that sprout up all year round in Hollywood.
And trust me, it’s reached dangerous and toxic levels...
Photo Credits: Hollywood life imitates "Sopranos" art. Michael Imperioli makes off with his goody bag stash at the VHI Big in 2002 Awards. Bet Tony doesn't want it!
WireImage/Jeff Vespa
The pre-Emmy awards gifting suites next week will throw free designer clothing, cosmetics, sunglasses, fragrances, shoes, jewelry, vacations, plasma screens, cell phones, free mani/pedi, facials, hair styling goop at stars who perform the simple service of posing for a few photos with the products or just talking to the company reps so the reps can tell magazines that this-or-that star loves/has/wears/eats/uses their products.
There must be over a dozen Emmy gifting suites going on next week. Check them out at the Luxe hotel, the Roosevelt, the Four Seasons, the Peninsula, maybe the Chateau Marmont and the Standard. And let's not forget party favors. Stars are being tempted to attend several Emmy parties witht he promise of goodie bags worth several grand.
And Mr Everson, this is just for TV stars. You should be in Hollywood next year, during the really big awards, the Globes, the SAGs, and the biggest freebie frenzy, the Oscars.
But its more than just an award season problem. What all the stars who are paid to make appearances at parties, hotel and store openings? How about the celebs who are flown free to Los Vegas for concerts at the Hard Rock Hotel, get free hotel rooms, meals, presents, a few grand in gambling chips, just for having their well-publicized birthdays, weddings, engagement/bachelor parties there.
Look what it did to Jessica Simpson and Nick Lachey’s marriage! Some say they grew apart. Some say infidelity. I blame it on the constant flow of Vegas freebies.
And look at Star Jones, who reportedly grew so addicted to swag that it cost her her job on "The View." Word is that Barbara Walters was so disgusted by Star's freeby gorging that she fired her to break the cycle. No fame, no freebies. Star has now hit rock bottom. Perhaps now she will ask for - and get - help.
Even so called independent film festivals are prey to this evil practice. Freebie suites have turned Park City into Swag City during the Sundance Independent Film Festival. Mr. Everson, you need to come and witness the impact of freeby fever. You should watch these pathetic swag-addicted stars traipsing around the snowy streets, their assistants trudging behind them, lugging their free shit. It's not pretty.
These stars can’t stop, Mr. Everson. They can’t help themselves. It’s up to you. You need to halt the flow of freebies at its source, not punish the poor unfortunates who fall prey to the swag dealers.
Just watch last week's "Entourage," if you think I’m making this up. Or check out “The Sopranos” episode last year which featured Ben Kingsley in a Hollywood gift lounge. The funniest part was the lengths Michael Imperioli’s character went to to get a swag bag for his boss: he mugged Lauren Bacall, for God’s sake. Only to have Tony open the bag and mutter, “Free? So what! I don’t need any of this crap!”
Mr. Everson, Hollywood needs your help. Not everyone is strong-willed as Tony Soprano. Not everyone can “Just say no.”
Photo Credit: Swag addicts Bai Ling and Cris Judd hoist their Vivendi gift bag at the Universal Games E3 Kickoff party.
WireImage/Arun Nevader
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