The Internal Revenue Service (IRS) made a slip up a few days ago after the government agency deemed in-game cash like the one in “Fortnite: Battle Royale” as virtual currency. A well-known business website took notice of it and asked them about such inclusion which prompted the tax-collecting branch of the U.S. government to make the necessary changes.
Immediately removed
Upon learning that in-game currencies like “Fortnite’s” V-Bucks and “Roblox’s” Robux were identified by the IRS as examples of convertible virtual currencies, Bloomberg Tax asked them if players who either earned or bought them would have to declare those on their 2019 tax returns.
The website noted that the government agency didn’t respond during their inquiry, though, they (IRS) already omitted that part on Wednesday.
For the uninitiated, the IRS’ original text stated that both the V-Bucks and Robux – alongside Bitcoin and Ether are just “a few examples of convertible virtual currency.” This statement has since been removed and the only example that’s left was the Bitcoin.
Before that statement got deleted, Coin Center’s Executive Director Jerry Brito also took notice of it and tweeted that a lot of people could have unknowingly checked “yes” on the 1040’s new questionnaire.
Further, Brito explained “Fortnite” alone already has 250 million users and not all of them are American taxpayers, though “it gives one a sense of the numbers.” He went on stating that he can’t comprehend what useful information the taxation department would get from asking such inquiry.
The inclusion of ‘Fortnite’ and ‘Roblox’ cash was a mistake
IRS Chief Counsel Michael Desmond, on the other hand, pointed out that the inclusion of both V-Bucks and Robux was a mistake, but he did not go in detail on how it ended up alongside Ether and Bitcoin. He said that it was “corrected" and that it "was done quickly” once it was brought to their attention.
Desmond was quite reluctant to confirm, however, that gamers need not to put a check such inquiry on theirs 1040s.
He did say, though that addressing in-game currencies in the context of virtual currency is not on their main focus as of late.
Per Bloomberg Tax, Desmond said, “I am not even looking into that. So, I’m not saying one way or another.” He also said that he’d be getting ahead of himself if says anything beyond that. The chief counsel went on advising everyone to read the website since they’ve already made a revision to it and just leave it at that.
Never Gonna
Now that everything has been cleared up, both “Fortnite” and “Roblox” players need not fret about getting taxed. As for the former’s player base, they can now buy the new Never Gonna emote on the battle royale shooter’s Item Shop and yes, Rick Astley approves on this one.