Virtual Money Real Tax?

Is the virtual Second Life world going to get a visit by the tax man?  This question pops up from time to time.  With virtual money and real money becoming somewhat interchangeable, it may happen.  Executive Director Christopher Frenze of the Joint Economic Committee suggests that if the worlds stay separate then there shouldn't be any problems.  The JEC is a Congressional committee where tax policy is studied, and apparently, the committee is studying the issue. 

The article on CNN Money concerning this issue quotes a number of tax faculty, including TaxProf Blog editor Paul Caron of the University of Cincinnati.