The U.S. Internal Revenue Service (IRS) has reaffirmed its position that staking rewards are immediately taxable, doubling down on a stance it assumed in 2023. In a recent filing related to an ongoing lawsuit, the IRS argues that staking rewards do not constitute new property and should be subject to taxation.
Background on the IRS Stance
In 2023, the IRS issued internal guidelines that classified staking rewards as taxable income. This stance has been reaffirmed in a recent court filing, where the IRS argues that staking rewards are not considered new property and are therefore subject to immediate taxation.
Implications for Taxpayers
The IRS’s stance on staking rewards has significant implications for taxpayers who engage in staking activities. Taxpayers who receive staking rewards may be required to report these rewards as taxable income, potentially resulting in additional tax liabilities.
Ongoing Litigation
The IRS’s reaffirmation of its stance on staking rewards comes as part of an ongoing lawsuit. The outcome of this lawsuit may have significant implications for the taxation of staking rewards and the broader cryptocurrency industry.
Source: News.bitcoin.com
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