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IRS Eyeballing Virtual World Tax Policies

Kotaku points out a Washington Post report about this year's recommendations from the national taxpayer advocate (an official who suggests improvements and updates to the tax code) which include developing clearer protocols for reporting taxable income from virtual worlds. We've previously discussed the implementation of such policies in China. Quoting the report summary (PDF): "By one estimate, about $1 billion in real dollars changed hands in computer-based environments called 'virtual worlds' in 2005. ... IRS employees have been unable to respond to taxpayer inquiries about how to report transactions associated with them. Economic activities in virtual worlds may present an emerging area of tax noncompliance, in part because the IRS has not provided guidance about whether and how taxpayers should report such activities. To improve voluntary tax compliance, the National Taxpayer Advocate recommends that the IRS issue guidance addressing how taxpayers should report economic activities in virtual worlds."

9 of 226 comments (clear)

  1. No taxation without representation by Anonymous Coward · · Score: 3, Funny

    No taxation without representation. Please vote Spongebob.

  2. Re:Excuse me by Anonymous Coward · · Score: 3, Funny

    I meant WOW gold.

    Gold hell, do they take wolf pelts?

  3. IRS can't withstand virtual reality by MSTCrow5429 · · Score: 5, Funny

    The IRS only exists in the real world. It should stay there. Otherwise, it could cause a reality breach, and soon find itself the target of thousands of nuclear warheads, tens of thousands of orcs, millions of heavily armed commandos, and a giant green pulsating penis.

    --
    Slashdot: Playing Favorites Since 1997
    1. Re:IRS can't withstand virtual reality by Anonymous Coward · · Score: 1, Funny

      and a giant green pulsating penis

      More and more I regret posting that home video on YouTube.

  4. Re:I can't wait for taxation by im_thatoneguy · · Score: 4, Funny

    Or an even better solution.

    The IRS can charge me taxes in WOW items. But I can defend it using WOW laws.

    So the IRS agent must catch me in a raid and take my items by force. Because if I'm in a WOW world I'm going to fight by WOW rules and kick his sorry tax collecting ass.

    Just think how much more interesting collecting a 400 gold piece tax will become when you can draw a sword and protect your property. Of course the IRS raiding parties will be top level well orchestrated teams working in concert across Azeroth it will add a whole new level of excitement every february for most players. The IRS would also probably add bounties for top
    level characters leading to an interesting new dynamic of payed free agents for whom money is on the line.

    Orrrr... if you sell your gold you report your "Other Income" like you're legally obligated right now. But that would be far less exciting.

    *thatoneguy does not play WOW nor has ever played WOW. However adding IRS agents as a force might... just might convince him to open an account.

  5. Taxman mob by Aceticon · · Score: 2, Funny

    Will we get a Taxman mob?

    Large boss, slightly human looking but with fiery red eyes and decaying flesh. Fights with a magical Tax Form and spawns an army of goblin-lawyers as adds.

    Players will only have time to go OMGWTFBBQPWNED before they die.

    1. Re:Taxman mob by Culture20 · · Score: 2, Funny

      Even Scarier: It's nigh invulnerable, and does damage to Gold instead of Hit Points. Maybe it could be paired with Death.

  6. Unite WOW! by UID30 · · Score: 2, Funny

    Isn't this how the Boston Tea Party started? How can they possibly think to tax online gamers hard earned gold without some form of representation? This is blatantly taxation without representation.

    I, for one, think that this opens up a need for seats in congress for Night Elves, Gnomes, Orcs, and even Tauren (as long as they promise to first take a bath). Sorry Humans, you've already got enough reps on the hill. We'll need HUGE multi-panel monitors setup all around the House chambers ... at least ... 130" tall so that each representative can be rendered at his/her real size ... and full sound systems for each so that their voice can be HEARD!

    And why stop there? We need seats on appropriations committees, too! Lets put those tax dollars ...err ... tax golds to work! How about a fast train system linking Ironforge to Undercity? Faster gryphon rides? or better yet ... FASTER LOGIN QUEUES for overloaded servers??

    Until we get all of this, I say we should each buy Tea from a local vendor and then drop it while standing at the harbor in Booty Bay. Below is a helpful list of some of the teas which might be appropriate:

    Honeymint Tea, Green Garden Tea, Thistle Tea, Goldthorn Tea, or even Green Tea Leaf

    --
    "Glory is fleeting, but obscurity is forever." - Napoleon Bonaparte
  7. Re:I can't wait for taxation by mattwarden · · Score: 2, Funny

    Your ideas are intriguing to me and I am interested in receiving your newsletter.