Jarrett takes IRS back to court in fight over crypto block rewards
Today Josh Jarrett filed a new lawsuit challenging the IRS’s taxation of block rewards, and Coin Center is pleased to be assisting him in this litigation. We have been advocating...
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IRS signals retreat in court battle that could reshape block reward taxation
Last year, Joshua Jarrett sued the IRS for a refund. In 2019 he earned block rewards on proof-of-stake networks, paid taxes as if those rewards were income (as per the...
Congress to IRS: Proof-Of-Stake block rewards should not be taxed as income
A bipartisan group of members of Congress have sent a letter to the Internal Revenue Service asking that staking rewards for validators in proof-of-stake networks be taxed when sold rather...
New Legislation Proposes Clear Tax Guidelines for Crypto Block Rewards
A bill was introduced in Congress which would clarify that taxes on block rewards are not due at the time of acquisition, but instead upon their sale or disposition. The...
Dilution and its discontents: Quantifying the overtaxation of block rewards
Newly created cryptocurrency tokens dilute the holdings of existing token owners. If block rewards are taxable income at their fair market value at the time acquired, token holders’ income will...
Taxing Cryptocurrency Block Rewards
Cryptocurrency networks have no dollars or other real currency to be spent on their own maintenance. Instead, newly minted cryptocurrency tokens are used to encourage people to help maintain the...
Don’t make these five common mistakes about blockchains and cryptocurrency.
1. There is no such thing as “the blockchain.” There isn’t just one blockchain out there. Each cryptocurrency (like Bitcoin or Ethereum) has its own unique blockchain that lists the...
A Duty to Answer: Six Basic Questions and Recommendations for the IRS on Crypto Taxes
U.S. taxpayers lack answers to basic questions about the federal tax and reporting effects of transactions involving cryptocurrencies. Although the Internal Revenue Service has been examining issues related to the...
“Blockchain” has become a buzzword in the technology and financial industries. It is often cited as a panacea for all manner business and governance problems. “Blockchain’s” popularity may be an...
Open Matters: Why Permissionless Blockchains are Essential to the Future of the Internet
This report offers a non-technical but thorough explanation of “blockchain technology” with a focus on the key variables within consensus mechanism design that differentiate so-called permissioned or closed and permissionless...