But the Tax Man Doesn't Care

From the Washington Post:

Movie stars appearing at the Academy Awards will no longer receive the lavish goodie bags they have come to expect -- worth as much as $100,000 each and including freebies such as iPods, resort vacations, coupons for laser eye surgery, jewelry and high-priced lingerie -- because of a crackdown by federal tax collectors.

The Internal Revenue Service and the Academy of Motion Picture Arts and Sciences announced a settlement today on "tax obligations" through 2005 for the bags, which in recent years the academy has given to as many as 200 hosts and performers on Oscar night. The academy also announced it will no longer give out the bags.

"There's no special red-carpet tax loophole for the stars," IRS Commissioner Mark W. Everson said in a prepared statement. "Whether you're popping the popcorn, sitting in the audience or starring on the big screen, you need to respect the law and pay your taxes."


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