• Written by: John Kaczur
• Thu, 03 Feb 2022
•   Russian Federation

The IRS is actually a lot nicer than you think. Especially to you crypto stakers out there. Or, maybe at the very least just Tezos stakers… Important development for those earning any Staking rewards. Keep an eye on further tax news as you may be entitled to refunds for any Staking rewards you paid income tax on […] The post We’ve Got Some Great News For Crypto Stakers appeared first on CryptosRus.

We’ve Got Some Great News For Crypto Stakers

The IRS is actually a lot nicer than you think. Especially to you crypto stakers out there. Or, maybe at the very least just Tezos stakers…

Important development for those earning any Staking rewards. Keep an eye on further tax news as you may be entitled to refunds for any Staking rewards you paid income tax on as regulation becomes clear.https://t.co/4QKItJEKJl

— DivXMaN (@crypto_div) February 3, 2022

According to a report, the IRS just made a decision that could have widespread implications on crypto staking. And by implications, they might actually be good ones this time around — unlike the infrastructure bill — thanks to a pair of lovers who’s bond is as strong as the APY for staking Tezos.

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• Joshua and Jessica Jerrett, a couple who, apparently, stake Tezos (XTZ) together, petitioned the IRS for a refund on the taxes they paid on their staked XTZ. The couple never sold their XTZ, but were still required to pay tax.
• Their defense argued that Federal Income Tax Law “does not permit the taxation of tokens through a staking enterprise”
• The legal team also argued that what the couple did was create property in the same way, say, a baker uses an oven or a writer uses Microsoft Word — their words not mine. This defense apparently worked. And the IRS is offering a refund to the Tezos power couple.
• It’s unclear how the decision to offer a refund effects the infrastructure bill. That bill is still somewhere between not done and done, and probably closer to not done. The infrastructure bill raised many concerns over the future of crypto, especially around the practice of staking coins.
• The idea being that staking, and proof-of-stake mining could become untenable under the bill. This precedent makes that less likely.
• Official court filings on the decision are expected to be released by the IRS Thursday February 3rd.
• It should be noted that the Jerret’s are not the first Tezos power couple. The proof-of-stake chain is founded by the husband and wife team Kathleen and Arthur Breitman.

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The post We’ve Got Some Great News For Crypto Stakers appeared first on CryptosRus.