Celebrities set to attend the Los Angeles Emmy awards have been reminded that items they are to receive in gift bags are worth more than $27,000 and taxable.

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Stars received a letter from the Academy of Television Arts and Sciences requesting they comply with federal, state and local tax laws and were asked to sign a waiver saying they had received the notice, E! Online reported.

Gift bags this year include Dooney & Burke luggage, Fresh skincare products, Dove chocolates and vacations in New Zealand and British Columbia.

E! Online, citing "earlier reports," says the Internal Revenue Service may collect almost $1.2 million from the 2006 Academy Award gift bags if recipients choose to keep the gifts.

"As the world watches the glamour and glitz of the Academy Awards, it's important to keep in mind that movie stars face the same tax obligations as ordinary Americans," IRS Commissioner Mark Everson said in a statement last March.