IRS taxation of online game virtual assets inevitable

**Iria** · Dec 3, 2006, 06:08 PM

Source: News.com
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If you are a hard-core player of virtual worlds like World of Warcraft, Second Life, EverQuest or There, IRS form 1099 may someday soon take on a new meaning for you.

That's because game publishers may well in the not too distant future have to send the forms--which individuals receive when earning nonemployee income from companies or institutions--to virtual world players engaging in transactions for valuable items like Ultima Online castles, EverQuest weapons or Second Life currency, even when those players don't convert the assets into cash.

EcPercy · Dec 4, 2006, 02:39 AM

If they try to tax me for playing a game, there is a simple solution. I will no longer play any MMO. I don't sell anything for real money.

So it would be in the best interest of the MMO creators to enforce the policy that they do not allow the sale of virtual goods and tell the IRS to shove it.

The IRS will then need to start going after the U.S. based sites selling virtual goods and asking why they are not sending in their self-employment tax money every quarter.

shaman9876 · Dec 4, 2006, 08:33 AM

If they start trying to tax us I deffently would try to get a large protest in washington. Because I never sell or purchase anything out of game.

**Vikingod** · Dec 4, 2006, 08:46 AM

Not gonna happen guys, don't believe the hype.

SFOSOK · Dec 4, 2006, 08:47 AM

Quote:

Originally Posted by shaman9876

If they start trying to tax us I deffently would try to get a large protest in washington. Because I never sell or purchase anything out of game.

Its ok as long as it just deals with MMO's. MMO's are the worst types of games. I bet not other type of game is as responsible for obiesity, lack of social interaction, and overall degrading American as well as world culture.

With any lucky they will be banned. I will do my part and just not play them ever.

GutterPunk · Dec 4, 2006, 10:41 AM

You know, those virtual sellers should be the ones getting taxed and what not. Now that I think about it I'm pretty sure none of them even think about paying taxes. Thats just as bad as illegals working in the US

Quote:

The panel was formed in the context of recent questions, which were [COLOR=#0048c0]first raised by author Julian Dibbel[/COLOR] in his book Play Money and in an article he wrote earlier in Legal Affairs magazine, about whether the transfer of virtual assets, or players' acquisition of virtual loot by, for example, killing monsters, creates taxable events.

acquisition of virtual loot... seriously how the heck. Killing monsters for Bind on Pickup (wow) items which have no economic value and only help yourself.... seriously wow.