SL holding my lindens ransom!

[RandyRiser Woodrunner]

I have a friend that rarely cashes out her lindens for real life money. She recently did this and Linden Labs put her lindens on hold(ransom)--wanting her SS# and a copy of her drivers license. She is not comfortable giving out this info, so she asked for them to just return her lindens to spend inworld. The will not return her lindens and actually gave her a deadline to submit her personal info or they will keep her lindens. Is that legal? Has anyone else encountered this and if so what did you do?

[Rolig Loon]

It's not only legal, it is required by the federal IRS, although I think you have misunderstood a couple of the details.  If you transfer more than a certain amount of money during the current tax year, Linden Lab is required to report the transfer to the IRS so that it is counted properly as income.  Read http://community.secondlife.com/t5/Commerce/Required-Tax-Documentation/ba-p/2336109

[RandyRiser Woodrunner]

I totally understand the taxing that has to happen. Her issue is that she asked for her lindens to be returned. She plans to keep the lindens inworld and not cash them out. SL has refused to return her money until she gives up personal information that she is not comfortable giving out. SL responded to her that they will let her choose if she wants to proceed with the "cash out" or keep the lindens in the game but only after she gives up her personal information. That just seems to me like they are forcing her to give personal info and violating her right to privacy! She has said that she has no problem abiding by the rules but it would have been nice to have been given the choice in advance before taking her money and refusing to return it.

[Innula Zenovka]

Rolig said it all, really, but in answer to your question,  Has anyone else encountered this and if so what did you do?  I completed the forms and emailed copies of the documentation they required, and they removed the hold within hours of receiving this.

[Lindal Kidd]

Rolig is entirely correct.  Your friend should read the link she provided and fill out the requested information.

[Rolig Loon]

Perhaps she ought to file a support case that explains all of this. It could be simply that the person who handles tax forms isn't seeing the same request as the person who sent her that response. It wouldn't be the first time that a request has been lost between two desks in an accounting office. She's going to have to be the one who submits the case, though, not you.