Styles & Scenes

Do 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

Heath explains his SAG giggles

Heath Ledger is horrified that some people who watched him introduce a clip from “Brokeback Mountain” at the Screen Actors Guild Awards misinterpreted his stage fright as some kind of gay spoof.

Ledger, speaking from his cell phone, called to explain. Seems the jitters started when he was sitting at the table with the “Brokeback” cast and he wondered aloud who was going to introduce their cast.

“I leaned over and asked Jake [Gyllenhaal] and he said, ‘WE are! Didn’t you get the script?' I said, WHAT? I thought it was a script for the Directors Guild Awards a few nights earlier.”

He and Gyllenhaal raced backstage to read it and try to rehearse. But there was no time and they were told to go out onstage. Gulp.

“I’m nervous under any circumstances in front of crowds," says Ledger. "I am not a public speaker and never will be. I was so nervous before the DGA Awards backstage that my jaw was jittering and I could not get the words out. I’m just not one of those naturally funny relaxed actors who enjoy the spotlight and are so good at it. And this was really weird because we were basically introducing ourselves, like here’s this brilliant cast and guess what, it’s us.”

So he got the giggles. Who wouldn’t? “How can you say all that stuff — 'two brave cowboys' — with a straight face? It was just so surreal.”

As for his self-described “teacup hand” position. “I’ve stood like that since I was a kid. You can ask me mum. It's nerves I guess. I’m a very fidgety person, always moving, never able to sit or stand still.”

Ledger wanted to set the record straight before any harm was done. “I am so sorry and I apologize for my nervousness. I would be absolutely horrified if my stage fright was misinterpreted as a lack of respect for the film, the topic and for the amazing filmmakers.”

It's Oscar time for Terrence Howard

If you thought the Screen Actors Guild Awards was star-jammed on Sunday, you should have snuck behind the scenes to Karen Wood’s Backstage Creations SAG Talent Retreat.

That’s the lavishly decorated celeb-only room where the stars gather before, during and after the show to chat, have a glass of bubbly or just relax from the awards pressure. Of course, another major reason to do the retreat is to get lots of free stuff from merchants displaying star swag in the room.

"Matador" star Pierce Brosnan admired Amouage fragrance from an Irish perfumer. The handmade bottles are so cool they’re the only perfume bottle in the Smithsonian. Marcia Cross and Eva Longoria (hanging on squeeze Tony Parker) loved Shu Uemura cosmetics, also used on the “Desperate Housewives” set. “Entourage” star Jeremy Piven picked up some Phyto hair product for his limping locks. “This is good stuff,” he pronounced. Yeah, baby. Hug it out.

“Crash” star Terrence Howard, looking hot in his D&G duds, felt so at-home that he hung out in the retreat until his category was called. Then he ran out, helped picked up the award for best ensemble cast and returned with “Crash” costar Don Cheadle, who was limping from an unexplained foot injury. Cheadle took a seat on a cream colored sofa, holding the carved wooden cane he’d bought in Kenya.

After picking up a blue Le Vian watch to match his suit, Howard, nominated today for a best actor Oscar for his lead role in "Hustle & Flow," tried to buy the B&W photos by Wall Kandy for his new house. Then he got so excited about a free trip to the Starwood Resort — the St. Regis on Bora Bora — that he announced he was booking his trip the very next day. Better wait until after the Oscars on March 5, Terrence. Angela Bassett drooled over the Bora Bora beach trip too but Ed Harris and his wife Amy Madigan were the most enthusiastic. And impatient. Harris suggested, “Let’s leave tonight!”

Take me with you. Please.

Photo: Terrence Howard synchronizes his free watch and Angela Bassett plans her next vacation at the Backstage Creations SAG Talent Retreat.
(Jesse Grant / WireImage)