IRS says crypto staking should be taxed in lawsuit
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The Internal Revenue Service (IRS) stated in a lawsuit that staking cryptocurrency should immediately create a tax liability upon completion. The IRS rejected the lawsuit filed by cryptocurrency investor Joshua Jarrett in the U.S. District Court for the Middle District of Tennessee. The lawsuit involved the tax treatment of staking, which is a process of generating new tokens by using existing tokens and computing power to verify currency transactions. In its response on December 20, the IRS denied that staking creates new property, and argued that the taxpayer (Jarrett) should pay taxes on the value of the staking rewards tokens when received.
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