Fergie's Tech Blog

IRS Taxation of Online Game Virtual Assets Inevitable

Daniel Terdiman writes on C|Net News:

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.

posted by Fergie @ 12/03/2006 10:36:00 AM