Whole world to cryptocurrencies While we were discussing taxation, an interesting practice came from the USA.
As you know, the U.S. Internal Revenue Service (IRS) already has staking earned through cryptocurrency It also considers its units as income and collects its tax.
In the US, Joshua Jarrett paid income tax in 2019 on 8 876 Tezos tokens he earned through staking. Jarrett, who applied to the IRS in 2020, demanded a refund of the tax he paid, arguing that the tokens he earned through staking were not income because they had not yet been sold.
After the IRS did not respond, the matter was taken to the court.
The IRS Takes a Step Back
While the case was pending, the IRS justified the applicant and declared the unsold staking offered to reimburse the income tax paid on the awards.
This proposal of the IRS is considered to be an important step back. This offer is earned by the IRS through staking. of your tokens it is interpreted as a sign that he agrees with the idea that it is property, not income.
Since the proposal in question is specific to this case, it remains unclear whether a wider policy change will be made.
Not wanting to settle for just a refund, Jarett and his lawyers refused to pay back. from the IRS cryptocurrency Plaintiffs, who want more clarity on their jurisdiction, want the matter to be discussed in court and the IRS to play their cards open.
While there has been no statement from the IRS on the matter, the case is expected to begin in March.