Patch Linden

Howdy!  I have returned with an update, well overdue and I am sorry about that!  As someone else said, it took some wrangling of various contacts and experts to get a full understanding of the impact potential with this.
That said, as many know the prior 2021 Federal threshold requiring that you could be the recipient of a 1099 was set at $20,000USD and 200 transactions.  For 2022, the Federal threshold has been reduced to $600USD with no transaction limit.  This is quite the change from prior expectations, and it only applies to USD funds being withdrawn from Second Life to an external account.  Any L$ to USD exchange is not a part of the reporting if the USD remains on your account balance and is used to pay for land maintenance fees or for premium or anything else you want to spend it on as long as you don't cash out.
However, I also need to point out that the state or locale in which you reside may also carry further stipulations that will require reporting all the way down to anything above $0 and this as a variable has not changed.  Our recommendation is that you should always seek the advice of a tax professional, attorney or accountant about your specific situation ahead of time to understand what may be applicable to your situation.
I hope the information helps!