IRS Crackdown on Luxury Gift Bags Could Be Boon for Charity
August 18, 2006
The Internal Revenue Service’s crackdown on awards ceremonies and film festivals that provide expensive gift bags and luxury giveaways, some valued at $100,000, to celebrities may benefit charities, reports the Los Angeles Times.
The revenue service has ruled such gifts are taxable income, and at least one Hollywood event planner said he expects more movie stars to donate them.
Last year, for example, the actor George Clooney gave his Oscar gift bag to United Way for Hurricane Katrina relief and recovery. At auction, it raised $45,100.
