Bloomberg Tax
Feb. 13, 2020, 7:26 PM

Calling Fortnite Cash a Virtual Currency Was an IRS Error

Allyson Versprille
Allyson Versprille

The IRS quickly recognized the need to correct website language that appeared to signal Fortnite and Roblox players were subject to a new disclosure requirement aimed at virtual currency transactions, the agency’s top lawyer said.

The agency on Wednesday removed language identifying Roblox and V-bucks—Fortnite’s in-game currency—as examples of convertible virtual currency. The language was removed hours after Bloomberg Tax asked if gamers who purchased or earned in-game currencies would have to disclose that on their 2019 tax returns.

IRS Chief Counsel Michael Desmond indicated that the inclusion of the video game currencies was a mistake, though he offered ...

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