The topic might seem odd at first because "virtual" means the opposite of "real." Is there tax on unreal things? Yes, there can be, and there might be other tax issues as well. Here are a few that I've been noting in presentations for the past few years:
- How and when do events and transactions in virtual worlds generate tax obligations?
- Is any of the bartering for virtual items taxable?
- Are virtual game players “in business”?
- Are “virtual” items “property”? If yes, how valued?
- Reporting obligations. For example, PLR200532025 addresses 1099 filing for an operator of online game-playing tournaments
- Location of transactions
- Any foreign currency issues?
I'll have more on the report and topic later, but want to note that there is a conference call scheduled by GAO for June 19. Per an email message I received from GAO:
"On June 19, 2013, GAO Director Jim White will respond to questions about our report on bitcoin and taxes. There is no need to respond in advance and participation is open to all.
How to Submit Questions: Users may submit questions in advance by emailing them to AskGAOLive@gao.gov. During the chat, users may submit questions in three ways: