Crypto Staking Tax Lawsuit Ruled Moot After IRS Issued Refund

A legal dispute pitting Tennessee taxpayers against the IRS over how cryptocurrency tokens are taxed has been dismissed by a Tennessee district court, because the refund sought by the taxpayers had already been issued and the dispute rendered moot.

Joshua and Jessica Jarrett initiated the closely watched lawsuit over Tezos tokens created by Joshua through the process known as staking, seeking a tax refund of nearly $4,000. The Jarretts argued that the tokens shouldn’t be taxed as income because they were newly created property. In staking, cryptocurrency holders are rewarded with additional tokens for lending their tokens and ...