The IRS recently pulled language from its website that would have subjected millions of users of certain popular video games to a new disclosure requirement.
The IRS webpage defining virtual currency originally listed “Robux” and “V-bucks” as examples of convertible virtual currency alongside cryptocurrencies like Bitcoin. Robux is a currency awarded by the immersive video game Roblox. Game users can earn or purchase Robux to buy special features of the game. Similarly, V-bucks is the currency used in the popular Fortnite combat game.
A revised attachment to Form 1040 includes a question on whether or not the taxpayer acquired financial interest in virtual currency. The new language could have resulted in millions of video gamers unknowingly having an obligation to check “yes” on the form, one advocacy group argued.
The revised language on the IRS webpage now lists Bitcoin as the only example.