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Golden Globe gift bags dramatically reduced 2007-01-11

Back in the 1970s, Oscar organizers began the practice of giving discreet gifts to unpaid presenters of the Academy Awards. The gift bags were a kind gesture for those that weren't taking home any real hardware, but over the years, the gift bags have taken on a life of their own. Up until the 2006 Academy Awards, the practice of giving out gift bags turned into a multi-million dollar industry with companies vying for the opportunity to gain some huge publicity. The IRS, however, stepped in just before the 2006 Academy Awards and reminded their celebrity recipients that they were now responsible to pay the taxes on such items.


And now, under the weight of such a decision from the Internal Revenue Service, the Golden Globe Awards are planning to curtail the practice of so-called "swag bags", whose value has soared to over $20,000 at the 2006 Golden Globes. Today, the Hollywood Foreign Press Association, the organizers of the Golden Globes, reached and agreement with the IRS to satisfy the tax obligations on the various luxurious items given out to the presenters at previous award ceremonies.


The Hollywood Foreign Press announced they have agreed to pay back-taxes on the gift bags given out prior to the 2006 Golden Globe Awards. Those individuals who received the swag bags at least year's Awards will be responsible for their own taxes. The organizers of the Academy Awards reached a similar deal last year. Forbes quoted Hollywood Foreign Press Association spokesperson Philip Berk as saying, "They will have to cough up that amount and declare it as income."


Reuters has reported that both the Hollywood Foreign Press and the Academy of Motion Picture Arts and Sciences have quietly chosen to discontinue the giving of swag bags for their 2007 awards. However, E Online is reporting that the Golden Globe Awards will place a $600 limit on the price of each gift bag and that everyone who attends the Golden Globes will receive a no-taxes-required gift package. Us Weekly reports that the swag bags will now contain discounts to Best Western Hotels and Loews Cineplex theatres.


While most people cite the IRS as the reason for the end of the gift bags, IRS spokesperson Beth Tucker was quoted by Forbes as saying their intention was not to end the long-standing tradition. "All we want to do is make sure the organizations and the recipients understand their tax responsibilities. This is not new tax law." When asked why the Internal Revenue Service is taxing a gift, Tucker replied, "They're not being given out of affection or disinterested generosity. They're being given in exchange for appearing at an event."


According to the Associated Press, last year's Golden Globe swag bags, given to presenters, contained a $2,000 gym membership, a $1,200 diamond pendant, a $475 camera phone, as well as handbags, MP3 players and a collection of gift certificates. However, despite the attraction of the gift bags, Berk claimed they were not the motivating factor for presenters to come to the awards. "It was a nice little something extra for them to look inside and maybe find one or two items they like. I don't think anybody really takes it as an incentive."


So, for now, Golden Globe presenters George Clooney, Rachel Weisz, Sarah Jessica Parker, John Stamos, Salma Hayek, Ben Stiller Justin Timberlake and Reese Witherspoon will have to settle for the honor of appearing at the 64th Annual Golden Globe Awards rather than a bag of swag.