There is an old saying that the only two certainties in life are death and taxes. It is a saying that the Internal Revenue Service in the United States seems to feel particularly committed to. ON CNN The report found that Roblox explicitly identified V-Bucks and Robux on the IRS website, Fortnites, as digital currencies that could be subject to "tax consequences".
The reference to V-Bucks has been removed, but has been in effect since at least October 2019 and can still be viewed on the website Wayback Machine,
"Virtual currency that has an equivalent value in real currency or serves as a replacement for real currency is known as a" convertible "virtual currency. Bitcoin, Ether, Roblox and V-Bucks are some examples of a convertible virtual currency currency," said the "Virtual currencies" page before the change. "Virtual currencies can be traded digitally between users and bought for US dollars, euros and other real or virtual currencies, or exchanged for US dollars."
The current version All examples except Bitcoin are removed from this page, but an identical description of the possible "tax consequences" for virtual currencies is retained.
"Selling or otherwise exchanging virtual currencies, or using virtual currencies to pay for goods or services, or holding virtual currencies as an investment generally has tax implications that may result in tax liability," the pages say. "The IRS issued IRS notice 2014-21, IRB 2014-16, as a guide for individuals and businesses on the tax treatment of virtual currency transactions. The IRS also published Frequently asked questions about transactions with virtual currencies for people who hold cryptocurrency as an investment and are not involved in trading or selling cryptocurrency. "
However, changing the wording does not necessarily mean changing the mechanics. As reported by BloombergIRS chief Michael Desmond said that including game currencies was a mistake, but Jerry Brito, executive director of the nonprofit for cryptocurrency research and advocacy Muenzzentrum, the website said a new question on the 2019 1040 form – "Have you received, sold, sent, exchanged, or otherwise acquired financial interests in a virtual currency at any point in 2019?" – could lead to problems. or at least confusion for a lot of taxpayers.
"I think a lot of people won't know they have to answer yes, so they will answer no," he said.
An epic representative said that V-Bucks should be exempt from the definition of the virtual currency and therefore taxation, because it cannot be traded or paid out between players. The Roblox currency Robux can be paid out under certain conditions, but the tax requirements are also set in advance.
"Robux can only be earned by developers through our Developer Exchange (DevEx) program and exchanged for real currency," said a Roblox representative. "Before making payments to developers, they must submit an IRS form to Roblox and report all DevEx payments to the IRS using Form 1099."
Mark Steber, Jackson Hewitt's chief tax officer, said the reference to V-Bucks and other game-related currencies may have been removed because it was not "particularly accurate" and that "yes" does not necessarily mean that you have to do anything else. But he also noted that this is likely a sign that the IRS will place a stronger focus on virtual currencies in the future.
"More guidance, more rules, more requirements, more oversight and oversight by the IRS," he said. "It is no longer something that will live in the background shadow. There is too much money."