Virtual Economies and The IRS

[yyrrkoon]

The National Taxpayer Advocate's 2008 Annual Report for Congress was recently released, and addresses the top 20 or so most serious problems for taxpayers. Most Serious Problem #13 is titled "The IRS Should Proactively Address Emerging Issues Such as Those Arising from “Virtual Worlds”".

The absolute seriousness of the report made it fairly hilarious to me. It is very, very, VERY dry reading and is quite possibly the most ridiculous thing I have ever read while working here. I'm going to post it, feel free to read it and share my pain as I had to go through the entire report, now my head hurts and I cant see very well.... well I think I was like that before I read it, but that's besides the point!


And remember, that Orc you just ganked may be an undercover Revenue Agent checking out the value of your radiance armor and Legendary weapon and preparing a real-life audit to recover taxes on same! You did keep receipts for all that crafting your doing right!!?? LOL You think im just joking.

Here is the link http://www.irs.gov/pub/irs-utl/08_tas_arc_intro_toc_msp.pdf
pages 228 - 241 of this report.

And they pay people to sit around and think this crap up.

[Thamros]

Thank you for the headache!

[Elricord]

this is awesome i think elricord is going to file chapter13 on all those failed crit items.

[yyrrkoon]

Welcome to the party tham!!!!!

[Thamros]

1. Will I get a tax credit for being a first time homeowner.
2. Will my stable/travel ration fees be tax deductible as a business travel expense?
3. Will I be subsidized as a farmer? Will they purchase myy excess crops that I was not able to sell? Will I still be able to grow and sell weed or will it become government controlled and only legal for medicinal purposes?
4. I have several children in game can I get tax deductions for them as well?
5. Will the DMV follow their example and start charging me registration feels for my horses/goats? Is said horse/goat is an older model will my registration fee be higher because my horse produces more methane than new ones?
6. Will the postage for mail be collected by the postal service?
7. Will peta start throwing blood on me in game for wearing my new fur coat?
8. Will dwarvf marriage be legalized? (since no one can tell male and female apart)
9. There are alot of coal burning forges and oil lamps how will we respond to the increased global warming. Are there viable alternative "clean" sources of energy?
10. Sauron definitely hasn't been paying his taxes. Will they prosecute him?
11. Will the U.S. Military provide troops. I hear Sauron has weapons of mass destruction. Sauron however is still hiding in the many tunnels and caves in the Misty Mountains will they be able to find him? Rumor is he is actually dead.
12. Once the people of middle earth have been properly trained to secure their own borders how long until the troops can with draw and the land handed back to the people?
13. Can I get a research grant? The cost of developing new potions is emptying my pockets.

Middle-Earth is changing and these are just a few of the many issues that we all have to face. Beware change is a comin!

[Tovaxx]

That is the most ridiculous thing the IRS has published to date. It would be fun to see a million gamer march on D.C. though.

oh and thamros.... lol

[yyrrkoon]

OK I'm sitting in my office here at work and instead of doing real work, I will answer Thams questions he posted above.

1. Will I get a tax credit for being a first time homeowner?

Yes you will be able to get a tax credit of 10% of the cost of the purchase price of your home up to 7500 silver. But as this is not a real credit but in actuality a loan you will have to pay it back at 500 silver a year until the entire loan amount is repaid.

2. Will my stable/travel ration fees be tax deductible as a business travel expense?

Your travel rations are tax deductible as a travel expense but only for 3,6,12, and 24 man instances. Also item repair costs, costs of food, pots and any scrolls used in these instances would be considers a business expense. All other travel and any expenses incurred would be considered recreational and cannot be deducted.

3. Will I be subsidized as a farmer? Will they purchase my excess crops that I was not able to sell? Will I still be able to grow and sell weed or will it become government controlled and only legal for medicinal purposes?

Yes the Gov. my subsidized your farming and my purchase any excess crops you have please contact Elrond at the Dept of Ag. ( Last Homely House) in Rivendell for more info on this matter. Yes you still will be able to grow and sell weed and at this time is not considered an illegal act. The Gov will though collect a portion of each crop for continued "Research". We will also require a portion of all beer and wine made in Middle earth to continue to test the alcohol content of each batch made. Please send 10% of the yield from each crop and 10% of all brewed alcohol to the Gov. Rep. Yyrrkoon.

4. I have several children in game can I get tax deductions for them as well?

All children are tax deductible until the age of 18 or until they get eaten by the random Goblin, Orc and/or Troll.

5. Will the DMV follow their example and start charging me registration feels for my horses/goats? Is said horse/goat is an older model will my registration fee be higher because my horse produces more methane than new ones?

At this time there will be no fees for horses/goats. There has been recent legislation introduced to require all horses/goats to be fitted with methane reducing devices to help reduce global warming. There is continued research on how to achieve this without serious "rear end" damage to said horses and goats.

6. Will the postage for mail be collected by the postal service?

The contract for LOTRO mail was awarded to UPS before the launch date. Fees have been collected since the BETA. UPS will continue to have exclusive rights to the mail until the end of this Fiscal year, at which time a new contract will be awarded.

7. Will peta start throwing blood on me in game for wearing my new fur coat?

As of Jan 1, 2009 PETA has been declared a terrorist group and all its members and representives should be treated as such. It has been determined that PETA is being supplied and armed by Angmar and Financed by Billionaire terrorist Osama Ben-Mordirith. Any encounters with PETA should be dealt with in the same manner as encounters with orcs, goblins, Brigands, Tomb-robbers, ect. Any loot found may be retained as compensation for said kills.

8. Will dwarvf marriage be legalized? (since no one can tell male and female apart)

All races of LOTRO are free to marry as they see fit. Its not the Governments intention to get in the way of an individuals right to the pursuit of happiness and/or gratification. The only Gov marriage/procreation restrictions at this time is for the individual Tovaxx. At no time shall he marry or FOR THE LOVE OF GOD procreate.

9. There are alot of coal burning forges and oil lamps how will we respond to the increased global warming. Are there viable alternative "clean" sources of energy?

Research is being conducted at this time on the feasibility of replacing the coal burning forges with Rune Keepers. We believe that the RK's ability to "Melt Faces" can greatly help Prospectors, Metal smiths and Weapon smiths increase production and Crit success while reducing smog, pollution and global warming. More testing is required in this area as some of the test subject have actually had their Faces melted. The safety of the Free People of Middle Earth is our first concern.

10. Sauron definitely hasn't been paying his taxes. Will they prosecute him?

We cannot/will not comment on an individual and any possible Government action against them. Mr. Sauron has the right to privacy as do all people of Middle Earth.

11. Will the U.S. Military provide troops. I hear Sauron has weapons of mass destruction. Sauron however is still hiding in the many tunnels and caves in the Misty Mountains will they be able to find him? Rumor is he is actually dead.

Our policy at this time is "No Troops". Mr. Sauron is cooperating with UN Eleven and Dwarven inspectors who are monitoring his military buildup. The inspectors have reported that there is no evidence that WMDs are being produced nor is Mordor even pursuing them. They followed by stating the Military buildup in Mordor is a response to the Military buildup of the neighboring Nations of Gondor and Rohan. Mr. Sauron released a statement saying "The National Security of Mordor is his number one priority as the lawfully elected leader of his country. He will do all in his power to secure his boarders against any and all aggression!" As long as the inspectors have full access to Mordor and Mount Doom, this policy will not change.

12. Once the people of middle earth have been properly trained to secure their own borders how long until the troops can with draw and the land handed back to the people?

Once again we repeat that there will be "NO TROOPS"! Read my lips!! N. O. T. R. O. O. P. S. !!!!!!

13. Can I get a research grant? The cost of developing new potions is emptying my pockets.

There are some Research grants available through the following Private institutions.

1. Nazgul Institute of Technology (NIT) is now accepting research grant applications.
These grants will cover all equipment, materials and crafting costs in full. You will
be required to sign a non-disclosure agreement and all discoveries will be the property
of NIT. Mail all applications to Saruman at Orthanc or email them to Saruman at
Sexybeast69@hotmail.com.

2. Mordor is awarding research grants at this time. Please apply in person at the Middle
Earth Free Peoples Humanitarian Research Facility for Peace at the beautiful campus of
Mnt Doom University. The campus is located on the southern slop of Mnt Doom. After
you Enter the gates of Mordor just follow the burning eye and take the first left
towards Mnt Doom. And remember if you pass the eye you have gone too far!


If you should have further questions please keep them to yourself as I’m WAYYYYY to busy to answer them. Oooo look its time for lunch!!!!

[Teepster]

That...Is...Awesome.

Kudos to both Thamros and Koon for this enlightening foray into Middle Earth Tax Regulations.

That was hella funny.

Teepster.

[Thamros]

Oh sh&t! Ok, It took me a while to recuperate from this. I laughed so hard I was cryin! You, Sir Koon have been awarded the "Mighty Eggplant!" :S

I've got to have a smoke now...

[Tashrina]

8. Will dwarvf marriage be legalized? (since no one can tell male and female apart)

All races of LOTRO are free to marry as they see fit. Its not the Governments intention to get in the way of an individuals right to the pursuit of happiness and/or gratification. The only Gov marriage/procreation restrictions at this time is for the individual Tovaxx. At no time shall he marry or FOR THE LOVE OF GOD procreate.

...there are still tears in my eyes from this...Koon. Have I told you lately how much I love you? Cuz I do. Especially now that I know that yours and my views on the Vaxx situation are so similar.

And Thameros! I love you as well...I need to adopt more kids, and get all of my toons adopted...