A new one has been added to the recent lawsuits filed in the cryptocurrency industry. Accordingly, Tezos (XTZ) The node operator filed suit against the IRS again.
Tezos (XTZ) Validator Josh Jarrett Doesn’t Give Up!
According to the news of The Block, TJosh Jarrett, a validator node operator on the ezos (XTZ) network, filed a lawsuit against the IRS.
Josh Jarrett stated that he disagrees with the US IRS’s tax policy regarding cryptocurrency staking rewards, claiming that there is a problem with the current law that requires staking rewards to be reported as income.
Additionally, Jarrett argues that staking rewards should be treated as property rather than income, and that these tokens should be taxed only at the time of sale, not beforehand.
Jarrett’s case, his wife Jessica Jarrett’s win in 2020 13,000 XTZ He also included a request for a refund of $12,179 in taxes he paid for the tax.
“Token staking involves creating a “new property” that no one has ever owned before. Therefore, the new property is not taxable income.
Instead, the taxable income should be the income from the sale of that new property.”
According to its guidance announced in 2023, the IRS states that block rewards such as staking are “income” as soon as they are created, and taxes must be paid on the estimated market value of the tokens as soon as they are earned.
This lawsuit filed by Josh Jarrett is supported by Coin Center, a non-profit organization that is a cryptocurrency researcher.
He had filed a lawsuit before too!
Jarrett filed a lawsuit against the IRS in 2021 regarding his 2019 tax bill, but that lawsuit was dismissed in early 2024.
In 2021, Jarrett requested a refund of the tax he paid for the XTZs he did not sell, claiming that the 8,876 Tezos tokens earned as staking rewards in 2019 should be treated as property, not income.
Because Jarrett did not sell the XTZs he earned in 2019, but paid the tax on these XTZs to the IRS.
In 2022, the IRS offered Jarrett a $4,000 tax refund for the $9,407 in taxes he paid on Tezos staking rewards. However, Jarrett refused extradition to continue his case. As a result, although Jarrett continued his lawsuit, the court dismissed the case entirely.
Experiencing a 2.1% increase in the last 24 hours XTZ At the time of writing, it continues to trade at $0.66.
*This is not investment advice.
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Source: https://www.bitcoinsistemi.com/abd-vergi-kurumu-irs-bu-altcoin-yuzunden-ikinci-kez-davalik-oldu/
