Kotaku points out a Washington Post report about this year's recommendations from the national taxpayer advocate (an official who suggests improvements and updates to the tax code) which include developing clearer protocols for reporting taxable income from virtual worlds. We've previously discussed the implementation of such policies in China. Quoting the report summary (PDF): "By one estimate, about $1 billion in real dollars changed hands in computer-based environments called 'virtual worlds' in 2005. ... IRS employees have been unable to respond to taxpayer inquiries about how to report transactions associated with them. Economic activities in virtual worlds may present an emerging area of tax noncompliance, in part because the IRS has not provided guidance about whether and how taxpayers should report such activities. To improve voluntary tax compliance, the National Taxpayer Advocate recommends that the IRS issue guidance addressing how taxpayers should report economic activities in virtual worlds."

NoisySplatter writes "Ernesto, founder of TorrentFreak, reports that a new trojan, 'Troj/Qhost-AC,' has been distributed on The Pirate Bay. The virus was disguised as a serial key generator, and the offending torrent has since been removed, but the source has not been identified. Troj/Qhost-AC makes changes to the user's hosts file that redirects The Pirate Bay, Suprbay, and Mininova to 127.0.0.1. In addition to making three popular torrent sites inaccessible, the virus also plays a sound file that says: 'downloading is wrong.' It looks like someone has finally stepped up to the plate to challenge Madonna for the title of 'Most Obnoxious Anti-Piracy Stunt.' Of course, this could just be the software industry's attempt at outdoing the RIAA and MPAA."