Came across this at IT Toolbox

Quote:

Will you be getting a IRS Form-1099 From Azeroth? HagarTheHorrible has slain a Dire Wolf. Dire Wolf drop 10 gold (Adding $0.56789 to player income). System Broadcast: IRS Form-1099s are being mailed to all players on Tuesday. Your form reflects $344,000 in income for the fiscal year. Say hello to the tax man for us! The game log above may not be as far-fetched as it appears today. There are forces at work trying to get the IRS to treat in-game rewards as income and thus have you taxed directly for it. CNet has an interesting (and scary) article up on the subject at http://news.com.com/Are+virtual+asse...l?tag=st.prev. This is almost too-strange for words. You don't have to pay income tax if you catch a home-run ball at a baseball game. If Barry Bonds signs that ball, you still don't pay taxes. But if you sell that ball, then you pay taxes. That's the way it should be. But the "tax everything" folks believe that trading virtual goods in virtual worlds should be taxed, even if no US currency is ever exchanged. Tell us what you think about taxes in World of Warcraft, Everquest, and Dark Age of Camelot. Is your epic armor going to cost you an epic tax bill? Would such a change to tax policy stop you from playing these games?

And it's not even the first of April yet...

Oh no...i honestly hope my government doesn't read this.

Well, I'll get a net benefit if I can deduct my repair bills for all those times I jump off the blimp.

Really, this is just too stupid for a real response.

Some people DO actually make money from selling gold on ebay. Or something. I don't know the details, but it's pretty sad what people will buy, and what people buy is what the government tries to tax.

As I read it, if one makes real money from selling stuff on eBay, that would be taxable (and makes sense). If they tax what you do in the game (and only in the game), it doesn't... at least to me.

Who the heck would bother reporting income from selling virtual swords and wands to the IRS?

The thought is that the person or organization would report it to the IRS, just like your employer (in the States) reports your income to them. If you don't come along and report your income as well, they go looking for you...

<font color = lightgreen>That is ridiculous--an in-game reward isn't real currency that would be accepted in the off-line world. Therefore, it cannot be taxed. Most likely this is simply some person's idea of leg-pulling. [img]graemlins/petard.gif[/img] </font>

Sure go ahead. I got a big, mean and hungry King Bangalash waiting to feed on those IRS people. [img]graemlins/hehe.gif[/img]

Tax the game, tax the sin, tax the wages, but stay the **** away from my Level 41 Hunter and his piles o' gold.

[ 01-17-2006, 06:28 PM: Message edited by: Sir Degrader ]

LOL @ Sir D :D

I agree with Sir D. If they come after me for my in-game acts, I'll corrupt their flesh to melt, curse their flesh with agony, death coil them, set them on fire, fear them, and then store their dead soul in a shard which I will later feed to a demon from the nether. In that order.

Strewth Timber :eek: *takes several steps backwards and hides book 18 of lawyer jokes* [img]graemlins/hehe.gif[/img]


I swear if Osama bin Laden really wanted to piss off the USA all he would have to do is come up with a foolproof plan to increase taxes. :D

Screw the tax man. My drunk arse is sick of paying for a bunch of needless crap and warmongering "defense" profiteers. The freaking military needs to take care of the threat from within if the voters dont take care of business soon.

/signed

What a silly article. Whoever wrote this article has an H&R Block level of understanding of tax law.