Crypto Exec Relaunches Challenge on Tax Treatment of Staking

The founder of the cryptocurrency Tezos is reopening his challenge of how “staking” is treated for tax purposes.

Joshua Jarrett filed a new lawsuit in the US District Court for the Middle District of Tennessee over an IRS assessment for Tezos challenging its assessment that the coins he created should be treated as taxable income.

Jarrett, who invented the currency, created 13,714 coins in 2020 through a process called staking, and he estimated their total value was $32,836. He included this figure on his tax return and sought a refund of $12,179, but the IRS disallowed the claim, treating the ...