IRS in Second Life

In a follow up to an earlier article by Adam Reuters, "US launches probe into Second Life," Adam now reports that Rep Jim Saxton stated a tax on virtual goods would be a bad thing.

From the story:

“There is a concern that the IRS might step forward with regulations that start taxing transactions that occur within virtual economies. This, I believe, would be a mistake,” Saxton said in a statement released on Tuesday.

“Clearly, virtual economies represent an area where technology has outpaced the law. The goal of the forthcoming JEC study is to help lawmakers understand the issues involved and head off any premature attempt to impose a tax on virtual economies,” he said.