Posted on Feb 2, 2022
Sources: In Win for Crypto Stakers, IRS Says Untraded Tokens Are Tax-Free - Blockworks
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If true, this is a huge win.
Sources: In Win for Crypto Stakers, IRS Says Untraded Tokens Are Tax-Free - Blockworks
Posted from blockworks.coPosted in these groups: 
Bitcoin
Bitcoin
Posted >1 y ago
Responses: 2
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..."A decision to refund a Nashville couple taxes related to unsold Tezos tokens is set to clarify the tax treatment of staked cryptocurrency.
In a win for cryptocurrency stakers and miners, the IRS has offered to refund the couple taxes paid on rewards gained — but not redeemed — from staking on the Tezos blockchain, according to people familiar with the matter.
In May 2021, Joshua and Jessica Jerrett requested a refund of $3,293 of income tax paid in 2019 for the receipt of 8,876 Tezos tokens, according to a legal complaint filed on May 26, 2021, with the US District Court for the Middle District of Tennessee. The couple also sought a $500 increase in tax credits for lost income.
Tokens attained through proof-of-stake protocols are taxpayer-created property and should not be taxed until sold or exchanged, the Jerretts argued. The complaint claims that nothing under United States law or IRS code and regulations allows for taxpayer-created property to be taxed as income.
The decision has potentially large implications for how proof-of-stake miners and stakers are taxed in the future.
Official court filings are expected to be made public on Thursday.
A representative from the IRS declined to comment."
In a win for cryptocurrency stakers and miners, the IRS has offered to refund the couple taxes paid on rewards gained — but not redeemed — from staking on the Tezos blockchain, according to people familiar with the matter.
In May 2021, Joshua and Jessica Jerrett requested a refund of $3,293 of income tax paid in 2019 for the receipt of 8,876 Tezos tokens, according to a legal complaint filed on May 26, 2021, with the US District Court for the Middle District of Tennessee. The couple also sought a $500 increase in tax credits for lost income.
Tokens attained through proof-of-stake protocols are taxpayer-created property and should not be taxed until sold or exchanged, the Jerretts argued. The complaint claims that nothing under United States law or IRS code and regulations allows for taxpayer-created property to be taxed as income.
The decision has potentially large implications for how proof-of-stake miners and stakers are taxed in the future.
Official court filings are expected to be made public on Thursday.
A representative from the IRS declined to comment."
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..."A decision to refund a Nashville couple taxes related to unsold Tezos tokens is set to clarify the tax treatment of staked cryptocurrency.
In a win for cryptocurrency stakers and miners, the IRS has offered to refund the couple taxes paid on rewards gained — but not redeemed — from staking on the Tezos blockchain, according to people familiar with the matter.
In May 2021, Joshua and Jessica Jerrett requested a refund of $3,293 of income tax paid in 2019 for the receipt of 8,876 Tezos tokens, according to a legal complaint filed on May 26, 2021, with the US District Court for the Middle District of Tennessee. The couple also sought a $500 increase in tax credits for lost income.
Tokens attained through proof-of-stake protocols are taxpayer-created property and should not be taxed until sold or exchanged, the Jerretts argued. The complaint claims that nothing under United States law or IRS code and regulations allows for taxpayer-created property to be taxed as income.
The decision has potentially large implications for how proof-of-stake miners and stakers are taxed in the future.
Official court filings are expected to be made public on Thursday.
A representative from the IRS declined to comment."
In a win for cryptocurrency stakers and miners, the IRS has offered to refund the couple taxes paid on rewards gained — but not redeemed — from staking on the Tezos blockchain, according to people familiar with the matter.
In May 2021, Joshua and Jessica Jerrett requested a refund of $3,293 of income tax paid in 2019 for the receipt of 8,876 Tezos tokens, according to a legal complaint filed on May 26, 2021, with the US District Court for the Middle District of Tennessee. The couple also sought a $500 increase in tax credits for lost income.
Tokens attained through proof-of-stake protocols are taxpayer-created property and should not be taxed until sold or exchanged, the Jerretts argued. The complaint claims that nothing under United States law or IRS code and regulations allows for taxpayer-created property to be taxed as income.
The decision has potentially large implications for how proof-of-stake miners and stakers are taxed in the future.
Official court filings are expected to be made public on Thursday.
A representative from the IRS declined to comment."
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