You probably heard that performers, nominees and others attending the Oscars got “Swag Bags” containing goodies worth $47,802, as Today.com and others reported. A lovely consolation prize for any nominees who didn’t get the statue, fer sure.
But did you hear that people getting the bags have to pay taxes on them?
Really! The IRS has said–you can see it for yourself right here—
that the value of the goodies are income and not gifts.
Says the Service, “…the organizations and merchants who participate in giving the gift bags do not do so solely out of affection respect or similar impulses for the recipients of the gift bags.”
The IRS says that businesses showering goodies on celebrities don’t do it out of affection!Those corporations don’t really, really love them!!
And people, don’t think the celebrities won’t notice that these gift bags are not about love. The IRS also has a bunch of rules about how businesses have to report the value of the gifts on Form 1099-MISC, which is sent to the goodie-bag recipients…and to the IRS.