HFPA: HFPA and IRS Reach Presenter Gift Box Accord
HFPA and IRS Reach Presenter Gift Box Accord
HOLLYWOOD, CA — (MARKET WIRE) — January 10, 2007 — The Hollywood Foreign Press Association andthe Internal Revenue Service announced today that they had reached amutually satisfactory
agreement that will resolve outstanding taxresponsibilities with respect to Golden Globe Awards gift boxes.
The Hollywood Foreign Press Association (HFPA) voluntarily approached theIRS last year seeking to clarify the tax issues surrounding the presenterboxes, as well as to ensure that any obligations for the prior years weremet. Under the closing agreement, the HFPA and the IRS have settled thetax obligations with respect to presenter boxes given through 2005. TheHFPA will issue appropriate informational tax forms to recipients of 2006boxes, who will be responsible for satisfying their income tax obligations,and beginning with 2007, the HFPA has ceased giving presenter boxes.
“We appreciate the Hollywood Foreign Press Association coming forward toresolve this issue,” IRS Commissioner Mark W. Everson said. “We’re pleasedthat the groups holding award ceremonies are keeping in mind the taxconsequences of gift bags and other promotional items.”
Last year, the IRS started an outreach campaign aimed at the entertainmentindustry. This effort focused on distribution of celebrity gift bags andpresenter boxes in conjunction with appearances by the stars at award showsand other gatherings.
“We are pleased to have reached an agreement with the IRS,” said PhilipBerk, HFPA president. “We thought it only proper that we assume the taxburden for 2004 and 2005; we felt it didn’t seem fair to ask those who haddonated their services to pay additional tax after they had already filedtax returns for those years.”
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