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Article: IRS MESSAGE ON SWAG LOST ON MANY COMPANIES.(Internal Revenue Service)
- Article from:
- WWD
- Article date:
- August 25, 2006
- Author:
CopyrightCOPYRIGHT 2006 Conde Nast Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Rachel Brown, With contributions from Marcy Medina
With the IRS putting the kibosh on tax-free award show swag, celebrities can no longer get their nails painted, hair styled, faces preened and backs massaged without forking over hard-earned cash to Uncle Sam.
Victor Omelczenko, a spokesman for the IRS in the Los Angeles office, warned beauty companies that services are not beyond oversight. "The same rules generally apply to free perks, such as services," he said. "If the service is not given out of the compassion of one's heart, the provider must report the fair market value of the services, and the recipient must declare it as income."
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