Monday, January 12, 2009

The grabbing hand of government goes virtual

The IRS enters another dimension -- all in the name of revenue enhancement.
The Internal Revenue Service should start taxing the fledgling virtual economy in Second Life, World of Warcraft, and other virtual worlds according to Taxpayer Advocate Nina Olson. In her annual report published on the IRS website, Olsen said that there are still a number of issues that the IRS should "proactively address" before they get out of control. And now that it's on the IRS' radar, it's likely only a matter of time before Uncle Sam tries to figure out some way to get a cut of your gold.

As most of our readers know, a number of virtual worlds involve the trade of real money for various virtual products and services inside of the game(s). And wherever people are spending money, someone is making it. Entrepreneurs are making fat cash off the sale of virtual land, clothing, sex toys, and everything in between in Second Life and other games, and now Olson wants the IRS to go after them.
Next stop for the IRS is the afterlife.

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