Interesting op-ed, The Taxman Cometh to Virtual Worlds, by Terri Wells:
He’s probably more feared and hated than any nasty giant or orc horde to meet the might of a player character or guild. Like a dragon, he’s attracted to treasure; like a vampire, he’s been accused of sucking the life’s blood out of his victims. He’s the tax man, he’s real, and he just might be the unavoidable addition to MMORPGs that no player can defeat.
I’m not talking about a monster; I’m talking about the IRS. If you think the IRS can’t tax virtual assets because they have no inherent value, think again. The situation is a lot more tangled than you might suppose at first glance.
(Hat Tip: Kreig Mitchell.) Prior TaxProf Blog coverage:
- NY Times on Taxing Virtual Economies (12/10/06)
- Taxation of Virtual Assets in Online Gaming Is "Inevitable" (12/4/06)
- JEC Warns IRS: Do Not Tax Virtual Economies (10/19/06)
- Bankman: On-Line Gamers Not Taxable Until They Sell Virtual Assets in the Real World (1/18/06)
- Can the IRS Tax Virtual Profits in On-Line Gaming? (1/10/06)
- Virtual Games, Real Taxes (6/1/05)
- Virtual Taxes: The Next Frontier in Virtual Property Rights in On-Line Gaming? (12/6/04)
