The IRS may not tax crypto earned through staking! The Jarret case involving Tezos may set the precedent.

In May of last year Josh and Jessica Jarrett requested a refund of income tax they paid on Tezos staking rewards in 2019. (Around $3200 for approximately 8800 Tezos tokens)

Today, the IRS has decided to issue that refund.

They will not refund any amount that was sold obviously but the couple is getting refunded for the entire amount requested, the tax they paid on the rewards that they did not sale.

This is huge for everyone involved in cryptocurrency and it carries personal significance for me.

This is the reason I dove headfirst into United States tax law. Some of you may remember my grossly overdone post on crypto taxation.

Nothing else is taxed at the moment of creation.

The records will be made public Thursday and the IRS has not made any public statements.

The Jarrett couple argued that new coins are tax-payer created property and should not be taxed until sold or exchanged.

EDIT: Source: Blockworks .com