Oscar Goody Bags Taxable, IRS Declares

The Internal Revenue Service warned Academy Awards performers and presenters that the gift bags handed out during Sunday’s televised ceremony -- valued in some estimates at more than $100,000 -- are taxable income.

“We want to make sure the stars ‘walk the line’ when it comes to these goody bags,” IRS Commissioner Mark Everson said, referring to an Oscar-nominated film about the late country singer Johnny Cash.