Taxing virtual currencies is becoming a virtual nightmare.
The Internal Revenue Services' section on taxing certain cryptocurrencies is vague and confusing to those who have just over 60 days to file their returns.
"Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as 'convertible' virtual currency,' reads the IRS' guide for taxpayers. "Bitcoin, Ether, Roblox and V-Bucks are a few examples of convertible virtual currency.'"
But language regarding Robux — used in the gaming world of Roblox — and V-Bucks from Fortnite has been changed, reported Vice on Thursday.
Nearly 250 million people worldwide exchange V-bucks, according to cryptocurrency policy think tank Coin Center director Jerry Brito.
In 2019, the IRS started asking people about their virtual currency reserves, according to Vice.
Robux fuel Roblox, a game where players build tools, worlds, and even their own games. Creators then sell products in Roblox for Robux.
A new report form the Government Accountability Office noted that the IRS is missing out on billions of dollars each year due to unreported virtual currency.
"Many virtual currency transactions likely go unreported to IRS on information returns, due in part to unclear requirements and reporting thresholds that limit the number of virtual currency users subject to third-party reporting," explained the GAO. "Taking steps to increase reporting could help (the) IRS provide taxpayers useful information for completing tax returns and give (the) IRS an additional tool to address noncompliance."
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