**IRS Reaffirms Stance on Staking Rewards Taxation**

The IRS has reiterated that staking rewards are taxable income upon receipt, countering a legal challenge from Joshua and Jessica Jarrett. The couple argued that these rewards should be taxed only when sold, likening them to property. The IRS maintains that rewards must be reported as income based on their market value when received. This ongoing legal battle, which began in 2021 over Tezos tokens, could influence future tax treatment of digital asset staking in the US. The Jarretts continue to seek a change in the IRS's approach through their latest lawsuit.