Oscars Put Freeze on Freebies

[Brian Damage]

HOLLYWOOD - Celebrities presenting at the Academy Awards ceremony will no longer receive posh gift baskets worth thousands of dollars because of a crackdown by the Internal Revenue Service.
The Oscar gift bag is considered to be the most coveted gift bag during awards season and is estimated to be worth up to $100,000.

Stars regularly receive items such as electronics, sunglasses, designer clothes and stays at posh resort destinations.

The IRS is demanding celebrities declare the baskets as income, not gifts, and pay tax on them, saying, "Movie stars face the same tax obligations as ordinary Americans."

The Academy of Motion Picture Arts & Sciences quietly decided to discontinue the gift bags in April, which often helps persuade celebrities to appear as presenters on the show.

Stars appearing at the Emmy Awards on Aug. 27 will be required to sign a form stating that they will pay taxes on their gift bag; otherwise they will miss out the posh presents.