« Second Life Fashion Bloggers Are Scrambling to Show off LeLutka's Upcoming Release (and I Can See Why) | Main | OpenSim Usage See Relative Monthly User Growth »

Monday, March 30, 2015

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Iggy

If you cash out Lindens for anything other than paying tier or premium membership fees, they become real and reportable income. What is so difficult to understand about that?

Julian Dibbell made it clear back in 2006, in Play Money, that we could expect this one day. The IRS agent he spoke to mentioned that the sale of virtual items would be taxed as soon as the IRS figured out what virtual items were :D

I knew this day was coming, with the Feds scrambling for more revenue. Now it's here.

Eddi Haskell

Not reporting $150,000 is bad enough but my guess is that not reporting the money in a foreign bank account is what actually got Mr. Kaminsky put in jail. US law is very strict -- any US Citizen or resident who has over $10,000 in any year of funds in a foreign bank or financial institution must report this amount by June 30 of the following year. If anyone has over $10,000 in any bank in calendar year 2014 you must report this by June 30, 2015. If anyone is deliberately not reporting an amount as large as $150,000 this very well could result in a jail sentence and severe fine. This law is strict for anti-terrorism purposes and money laundering, and my guess is this is what got Mr. Kaminsky in such hot water, even though he probably can go home on weekends and he probably will have his sentence cut by 40% if he is cooperative.

Ciaran Laval

The jail time appears to be largely based upon him coming clean and still not declaring his SL income.That didn't go down well.

In a report I read he claimed that there had been some discrepancy as to whether income from SL was taxable, there should no longer be any sort of discrepancy about that.

Sepp

Of course income from any source should be reported to the IRS.

But with taxation of incomes from SL also must follow the possibility to make deductions for losses from doing business in SL.

Anonymous

I did a little bit of poking here, because these numbers didn't make sense. 140,000 DOLLARS over 8 years is nothing to sneeze at taking home from SL. It amounts to $17,500 a year, or $1,458 a month, which amounts to about 37,000 L$ a month.

Gregg Kaminsky's linked-in profile lists him as CEO of "CircleNet LLC". The website he lists is circlenetvirtual.com. He described his business as a major vendor network and affiliate system, which immediately had me thinking about vendor systems like JEVN or Caspervend - but I'd never heard of CircleNet before. WHO was big enough to make that kind of money in SL for the last 8 years, and I've never heard of them?

I had to go deeper.

The circlenetvirtual.com domain has expired, but the internet archive has a capture of the site from 2010.

http://web.archive.org/web/20100701073448/http://www.circlenetvirtual.com/about.htm">http://www.circlenetvirtual.com/about.htm">http://web.archive.org/web/20100701073448/http://www.circlenetvirtual.com/about.htm

On that captured webpage, circlenet talks about their ownership of the Pattaya Island sim, and they tell a story about how they got started in SL as a small company called Thailani.

A little inworld detective work turned up the fact that Pattaya Island is now owned by the "Twisted Orchid Fetish Club" group, founded by Kailani Ling. A little bit of searching turned up an inworld group called, Thailani Development", also founded by Kailani Ling.

Owner of Kinky-O.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)

Wagner James Au
Wagner James "Hamlet" Au
Dutchie Evergreen Slideshow 29112021
my site ... ... ...

PC/Mac readers recommend for SL:

Classic New World Notes stories:

Linden Limit Libertarianism: Metaverse community management illustrates the problems with laissez faire governance (2008)

The Husband That Eshi Made: Metaverse artist, grieving for her dead husband, recreates him as an avatar (2008)

Labor Union Protesters Converge On IBM's Metaverse Campus: Leaders Claim Success, 1850 Total Attendees (Including Giant Banana & Talking Triangle) (2007)

All About My Avatar: The story behind amazing strange avatars (2007)

Fighting the Front: When fascists open an HQ in Second Life, chaos and exploding pigs ensue (2007)

Copying a Controversy: Copyright concerns come to the Metaverse via... the CopyBot! (2006)

The Penguin & the Zookeeper: Just another unlikely friendship formed in The Metaverse (2006)

"—And He Rezzed a Crooked House—": Mathematician makes a tesseract in the Metaverse — watch the videos! (2006)

Guarding Darfur: Virtual super heroes rally to protect a real world activist site (2006)

The Skin You're In: How virtual world avatar options expose real world racism (2006)

Making Love: When virtual sex gets real (2005)

Watching the Detectives: How to honeytrap a cheater in the Metaverse (2005)

The Freeform Identity of Eboni Khan: First-hand account of the Black user experience in virtual worlds (2005)

Man on Man and Woman on Woman: Just another gender-bending avatar love story, with a twist (2005)

The Nine Souls of Wilde Cunningham: A collective of severely disabled people share the same avatar (2004)

Falling for Eddie: Two shy artists divided by an ocean literally create a new life for each other (2004)

War of the Jessie Wall: Battle over virtual borders -- and real war in Iraq (2003)

Home for the Homeless: Creating a virtual mansion despite the most challenging circumstances (2003)

Newstex_Author_Badge-Color 240px