IRS Removes Crypto Tax Reporting for Fortnite and Other Game Tokens

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The U.S. Internal Revenue Service (IRS) has updated its webpage, removing parts of its crypto tax disclosure guideline which classified game tokens as cryptocurrencies. This includes the online gaming sensation, Fortnite. Fortnite Token Owners Don’t Have to Pay Crypto Tax According to BloombergTax, game token owners won’t have to answer the crypto-specific question on Form 1040. This development comes after the IRS pulled confusing language from its definition of virtual currency. As recently as Wednesday (February 12, 2019), the IRS lumped game tokens like Roblox and V-bucks under the virtual currency umbrella. Based on the initial wording of the IRS’ virtual currency definition, millions of game token owners in the U.S. would have been obligated to check yes on the crypto question in Form 1040. Game tokens typically operate within “closed” digital economies where there is hardly exchange of these digital ‘coins’ for fiat currency. The typical function of game…

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