IRS says crypto staking should be taxed in lawsuit

Odaily Odaily News: The U.S. Internal Revenue Service (IRS) said in a lawsuit that staking cryptocurrencies should generate tax liabilities immediately upon completion. The IRS dismissed a 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, 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 would create new property and believed that the taxpayer (Jarrett) should pay taxes on the value of the tokens when he received the tokens for staking rewards.