With a new legal brief, Tezos stakeholder couple puts pressure on the IRS. A dispute involving the Internal Revenue Service (IRS) and its purported attempt to refund a couple’s tezos (XTZ) crypto staking tax bill may come to a head after one of the pair asked for a “definitive judgment” that could revolutionize the way staking is taxed in the US.
It involves Joshua and Jessica Jarrett, who was served with an IRS tax bill for staked tokens they had not converted to fiat, as previously reported. The charges against Joshua Jarrett were allegedly settled after he attempted to contest them. The IRS may have been trying to avoid creating a legal precedent. Tezos stakeholder couple puts pressure on IRS with a new legal brief.
With a new legal brief, Tezos stakeholder couple puts pressure on the IRS
After one of the pair pressed for a “definitive judgment” that might revolutionize the way staking is taxed in the US, a dispute involving the US Internal Revenue Service (IRS) and its purported attempt to refund a couple’s tezos (XTZ) crypto staking tax bill could come to a head. The issue involves Joshua and Jessica Jarrett, who were initially served with an IRS tax bill for staked tokens they hadn’t converted to fiat, as previously reported.
Joshua Jarrett was allegedly offered a settlement after contesting the charges. Some speculated that the IRS was acting to avoid creating a legal precedent.
“The government offered me a refund and wants my case dismissed without acknowledging I’m right. I’m opposing that to try to seek a definitive ruling. My case is a straightforward question of the tax law and I need a court to decide it.”
New property (staked or even mined tokens), according to Jarrett, can “never” be taxed “unless it’s sold” for currency. As a result, he stated that his argument “isn’t about avoiding tax; it’s about when” and “if it’s fair” that stakeholders get taxed.
Furthermore, he asserted that taxing block rewards “as income” makes “taxation ridiculously difficult,” adding: “Blocks and tokens are constantly being generated. Furthermore, taxing block rewards as income leads to significant over-taxation.”
The Washington-based Coin Center also filed an amicus curiae brief in Tennessee District Court to “assist the judge in understanding the importance of a final verdict.” Coin Center Director of Research Peter Van Valkenburgh noted that Jarrett had rejected his refund to persuade the court to deliver a clear judgment.
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