Over at Terra Nova they link to a piece in Legal Affairs that says the IRS is considering trying to find a way to charge people for virtual commerce. No, I don't mean using IGE, I mean taxing you on that gold you made for selling an Arcanite Reaper. Because the real world value of gold can be quantified, selling an item for 1000 gold, which has a value of (for the sake of argument only) $60. The IRS' thinking is this: "Goods taken in trade or won at play are taxable the moment they fall into somebody's hands, even if they are not sold for money."

Would a policy like this be the death knell for MMOs? Is the IRS overstepping its boundaries, here? Or are they within their rights given the popularity of virtual commerce?

The Taxman Cometh [Terra Nova]
Dragon Slayers or Tax Evaders [Legal Affairs]

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