IRS actions on crypto staking and absent promised regulations from Treasury are expected to spark new legal fights over arguments about proper categorization of crypto rewards.
The IRS last month said in guidance that cryptocurrency tokens created through staking must be reported as income as they are valued when they arrive in the staker’s possession and then as capital gains after they are sold—similar to its longtime guidance on crypto mining.
“Everyone kind of expected what the IRS was going to say,” said Miles Fuller, head of government solutions at TaxBit and a former senior counsel at the ...
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