IRS Should Tax Virtual Money Spent On Real Goods, GAO Says

Law360, Los Angeles (June 18, 2013, 7:54 PM ET) -- Role-playing gamers who exchange virtual currency for real money or products should have to pay taxes for those transactions, but the Internal Revenue Service shouldn't implement a stringent compliance system just yet, according to a Government Accountability Office report issued Monday.

The size of virtual economies isn't known, because some companies don't report data about their virtual worlds' activities, transactions can be borderless and anonymous, and individuals can have multiple virtual currency accounts, stated the report, which was compiled last month. Thus, the potential amount of...
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