Entertainment Legal News

IRS, Hollywood Foreign Press Association Reach Agreement On Gift Baskets

The Internal Revenue Service announced today another milestone in its outreach campaign to the entertainment industry regarding the taxability of gift bags and promotional items. The Hollywood Foreign Press Association and the IRS reached a mutually satisfactory agreement that will resolve outstanding tax responsibilities with respect to Golden Globe Awards presenter gift baskets. The Hollywood Foreign Press Association (HFPA) voluntarily approached the IRS last year seeking to clarify the tax issues surrounding the gift baskets, as well as to ensure that any obligations for the prior years were met.

Under the closing agreement, the HFPA and the IRS have settled the tax obligations with respect to gifts given through 2005. Recipients of 2006 gift boxes will be issued appropriate informational tax forms by the HFPA and will be responsible for satisfying their income tax obligations.

Last year, the IRS started an outreach campaign aimed at the entertainment industry. This effort is focused on distribution of celebrity gift bags and goodie bags in conjunction with appearances by the stars at award shows and other gatherings. Such bags can include luxury trips, jewelry and electronics. Dozens of the award shows take place each year. Read more at irs.gov.

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	Did You Know?
	Treatment is one of the starting blocks in the development process The treatment takes the outline a step further, adding depth to character and story by filling in missing blanks. The treatment's main purpose is to tell the complete story before setting it in script form. Most are written in prose and range from ten to twenty pages. The treatment is the best place to hammer out initial story and character problems. Unless a script is sold on spec, most buyers require a treatment (or very detailed) outline from its writers before commencement of the actual screenplay. If financed independently, the treatment's often a part of the initial fundraising package.