The only sure thing in life is death and taxes. Celebrities are finding this out. From the IRS. And even LASIK eye surgery is not exempt in Hollywood. And Oscars and other awards are not tax free.
Receiving an Oscar is the pinnacle of a performers career. Very few people are nominated for an Oscar and even fewer will ever receive one. You would expect this to be a joyful moment.
The IRS is attempting to suck some of the joy out of this moment by reminding the Hollywood celebrities that they will still have to pay taxes on any of the gifts that they receive.
In fact nominees for the Emmy Awards will receive presents and gifts that could be worth 42 thousand dollars or more. Grammy presenters were given gift packages of perhaps 70thousand dollars, including free LASIK eye surgery.The IRS says celebrities receive the gifts in exchange for marketing and as endorsements and it is therefore a form of commerce. These gifts and present must therefore be taxed at fair market value.
Fortune and fame and LASIK surgery are not exempt from the IRS. Even in Hollywood.