[kingu]

Absolute bunk. That's not income, that's a gift. What's next - I'm going to get taxed for junk mail? They were given stuff as a method of publicity. The bigger the gift, the more times it gets repeated by the trades and traditional news sources.

There's no verification as to the actual 'value' of the gift, no exchange (if each person stopped to be photographed with the company for publicity purposes, sure, that gift is income), and without a verified value and an exchange, it is of no more income value than the Marlboro brass dice I got in the mail.

The IRS is fishing here, and I hope that they get slammed hard for it. I mean, what is the value of a coupon for $20 thousand dollars in cosmetic surgery if it isn't used? A seven thousand dollar set of underwear that someone doesn't want. Sorry; as much as I detest much of the Hollywierd crud that walked down that carpet, they shouldn't pay taxes on this junk.

[hocndoc]

Good comments, kingu.

There's no way that this is "income."

It is an advertising gimmick from the seller.

[hocndoc]

"Inland Revenue Service"?

[Loyal Buckeye]

That's not income, that's a gift.

I think the rub is that the bags are tied to the "stars" doing the red carpet thing. Therefore, the bags are for services rendered.

[fooman]

gifts are taxed as income. Actually, I am for surtax on liberals.

[1rudeboy]

The IRS limit on gifts is $12K/year (I think). Don't forget to file your Forms 709, guys!

[wafflehouse]

good point..

[Lurking Libertarian]

Absolute bunk. That's not income, that's a gift.

There is a lot of case law about "gifts" under the Internal Revenue Code. If you give a gift to a friend or family member out of "disinterested generosity," it's not income to the recipient; but if you give someone something out of a business motivation, it is legally considered income to the recipient even if it's a "gift" in the sense that you had no legal obligation to give it to them.