Second Life and Tax

For the thrilling conclusion to this tale, and the solution to all the problems, see this post. Listen to that post and not to all the mistakes I made before it! ]

You may have heard something lately about Linden Lab requiring tax documentation on people who transact above a certain level in SL. Well, today I got my request for filling out the forms. As of now I can no longer withdraw any money from SL until this is all sorted out.

Unfortunately I’m not a US citizen. My country, the UK, has a tax treaty with the US meaning that I don’t have to pay any US taxes so long as I pay the UK ones (which I do – I fill out the giant self assessment forms every year. What joy). This should mean I just fill out a form and everything’s fine, but I doubt it’s going to work out like that.

I’ve filed the required form electronically with LL and I’ve been trying to send them copies of the required identity documentation but their system won’t let me upload them.

So, right now just about $2000 is sitting in limbo waiting for Uncle Sam to say that I’m allowed to have it. Having dealt with American bureaucracy before I don’t hold out a lot of hope there.

I hope you’ll join me in keeping your fingers crossed for me – if I’m not allowed to withdraw my earnings then there’s not a lot of point continuing to create things in SL. For the moment I’m putting everything on hold until this is sorted out. I’ll update when (or if) things change.

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One thought on “Second Life and Tax

  1. Don’t you DARE give up! Too many talented creators have either withdrawn their products or left SL entirely for one reason or another. Yes, the money is nice, but it shouldn’t be the only reason to make things. Please don’t let some ridiculous tax law put you off.

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