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Golden Globes = IRS gold

January 15, 2007

Tonight the statuettes will go to actors, directors, producers and screenwriters. But the biggest payoff will go to the IRS.

Golden_globes_trio_2
Federal tax collectors are once again singing "Hooray for Hollywood tax liabilities" as TV and film glitterati gather for tonight’s Golden Globes ceremony.

It was just about
six months ago that Uncle Sam made
his first call on Hollywood’s booty, successfully extracting an agreement, and accompanying tax cash, from participants in the Oscars’ award ceremony who received expensive gifts from advertisers and sponsors.

Like any good Tinsel Town agent, the tax collector then parlayed that success into subsequent tax collecting gigs with the television Emmy awards and now the Hollywood Press Association’s Golden Globe awards.

Essentially, the IRS regards such gifts of promotional items to stars as payment — income — for a job, not simply a gift between friends. Gifts are not taxable. Income is.

After the IRS nailed the Academy Awards folks, the Hollywood Foreign Press Association caved. According to the IRS, the group voluntarily
approached the tax agency
last year to clarify the tax issues
surrounding the gift baskets, as well as to ensure that any obligations
for the prior years were met.

The 2005 tax issues are taken care of, says the IRS. As for this year, recipients of gift boxes will be issued
"appropriate informational tax forms by the HFPA and will be responsible
for satisfying their income tax obligations."

"The
fact this gift bag practice grew so quickly is stranger than fiction," said IRS Commissioner Mark W. Everson. "We’re happy the Hollywood
Foreign Press Association stepped forward to resolve this issue."

Which stars will be as happy as the IRS commish after tonight’s ceremonies? I’ll just have to find out tomorrow by watching Entertainment Tonight or E!

Instead of sitting trough the awards show, I’m going to be watching Jack Bauer as he continues his latest "worst day of my life" effort to once again save the United States from evildoers.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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