Following up (via E! News) on yesterday’s post about the IRS’s agreement with the Hollywood Foreign Press Association resolving outstanding tax responsibilities with respect to Golden Globe Awards presenter gift baskets:

[T]he HFPA has decided to forgo the traditional gift baskets for presenters at next week’s Golden Globes. The HFPA made its announcement Wednesday, shortly after the IRS stated that the two organizations had reached an agreement, in that the HFPA would take care of the back taxes for all gifts handed out until 2005 and provide celebrities who received goodies in 2006 with the appropriate income tax forms. …

Last year’s bag, stuffed with gadgets, jewelry, spa certificates, trip vouchers and the like, was valued at $40,000, all taxable income. Because vendors and other swag providers can generally write off the items as the cost of doing business (advertising, etc.), the IRS does not recognize the gift baskets as "gifts." And since the A-listers technically receive the "gifts" in exchange for appearing at an event—that’s where the income part plays into it.

To avoid further confusion, everyone who attends the 64th Annual Golden Globe Awards on Monday will receive a no-taxes-required gift package worth $600.

Hat Tip:  Donald Tobin (Ohio State), who wonders whether HFPA also is paying the tax liability of the presenters caused by HFPA’s payment of the tax liability of Golden Globe presenters who received gift bags in prior years.