In settlement, stars owe for 2006 but are off the hook for prior years; Academy says no more gifts.
NEW YORK (CNNMoney.com) -- A lot more of Hollywood's elite that go to the Oscars will be coming home empty-handed.
The Academy of Motion Picture Arts and Sciences has said it will no longer give out gift bags to presenters or performers after facing heightened scrutiny by the Internal Revenue Service.
"It seemed a little inappropriate to offer a gesture of thanks that then carried with it a [tax] obligation," said Leslie Unger, a spokesperson for the Academy.
Earlier Thursday, the IRS said it had reached an agreement with the Academy on resolving "outstanding tax responsibilities" on Academy Awards gift baskets given out up through 2005.
Comments