We learned that the court in Josh Jarrett’s case against the IRS has ruled that the IRS's offer of a refund for his 2019 taxes means there is no longer a case or controversy before the court and that the case must be dismissed. We fully support Josh’s decision to appeal. 

In a case now more than two years old, Josh sought to clarify that his staking rewards are created property that does not give rise to taxable income until sold. Eventually the IRS offered Josh a tax refund for 2019, and while this obviously suggests the IRS agrees with Josh, the IRS refused to confirm this or to assure Josh of the same tax treatment going forward.  

Josh deserves a ruling on the merits of his arguments and he is right to challenge the dismissal of his case. Without a meaningful opportunity for judicial review, there is little to constrain the IRS from creating uncertainty through selective enforcement. 

Millions of Americans are looking for confirmation that staking rewards should be treated no differently under the tax law than any other newly created property, and for the government to stop sowing seeds of confusion. The government must acknowledge fair treatment of staking to enable proof-of-stake ecosystems to flourish in this country. In the meantime, POSA will continue fighting on behalf of stakers across the U.S.