The US Internal Revenue Service (IRS) has decided not to tax unrealized profits derived from crypto staking or mining digital assets.
Many participants in the crypto space have welcome the news, who have been actively voicing their opinions against the proposed taxes in recent months.
Casey Wagner of Blockworks was the first to write about it, adding a Nashville couple would receive a tax refund on unsold tokens stored on the Tezos blockchain.
In May 2021, Joshua and Jessica Jerrett sought an income tax refund of $З,29З paid in 2019 for receiving 8,876 Tezos tokens in a complaint filed May 26, 2021, in US District Court for the Middle District of Tennessee. The couple also sought a $500 tax credit increase for lost income.
The couple argued the token rewards received through the PoS protocols were “property created by the taxpayers. Thus, under the code and IRS rules, they are not taxable until sold. Blockworks said the official court documents will be released on Thursday, February 3.
Although cryptos are traded around the world, different jurisdictions have different approaches to the taxation of cryptocurrencies. India has recently announced a 30% tax on cryptocurrencies during its Feb. 1 budget meeting. Indian Prime Minister Narendra Modi also called on the G20 to work together to regulate digital assets and create a common framework.