Tezos 
$0.698188‘s founder, Josh Jarrett, and his wife, Jessica Jarrett, have filed a new lawsuit in Tennessee Federal Court challenging the IRS’s enforcement of staked XTZ tokens.
Case Details
The Jarretts argue that newly created tokens obtained through staking should be taxed only when they are sold. They state that new assets should not be subject to tax until they are sold.
Jarrettler filed a lawsuit against the IRS in 2021 for similar reasons and demanded a refund of the taxes they paid on staked XTZ tokens. That case resulted in a $4,000 settlement offered to the Jarretts, which was rejected.
Support from Coin Center
It is stated that Josh Jarrett’s case is important for the future of crypto money and decentralized technologies. “For proof of stake, this tax issue applies to everyone,” it is said.
This time around, Jarrettler wants to stop not just staked tokens, but also permanently stop the IRS from recognizing newly created crypto assets as income.
Coin Center, a supporter of the case, emphasized that this legal fight will have broad effects on the crypto community.
As debate continues over how the IRS classifies and taxes crypto assets, Jarrettler’s legal action aims to reduce uncertainty in this area.
The outcome of this case could impact all cryptocurrency holders staking and shape relations between the IRS and the crypto community.
As a result, Jarrettler’s case could have a significant impact on crypto taxation policies and set an example for other crypto investors facing similar situations.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
