Metaverse transactions will still eventually generate Form 1099s and will need taxpayer IDs, and many independent contractors globally are already paid in crypto, Eitel said.
“Perhaps the metaverse isn’t all that different. ... We still interact with others and, increasingly, engage in commercial activity,” writes blogger Gail Cole on the site of Avalara, a sales tax solutions provider and consulting company. “For there’s money to be made in the metaverse. That’s surely why many people are there.”
And that's why local and state authorities are also poised to tax the metaverse. Miami, for example, is looking to soon accept crypto for taxes and fees. The governors of Florida and Colorado want their states to consider accepting crypto for taxes; other states are similarly interested.
“Where there’s money, sooner or later there will be taxes,” Cole said.