Cryptocurrency Tax on Token Creators Fought in New Lawsuit (1)

Newly created cryptocurrency tokens can’t be taxed as income because federal income tax laws don’t permit taxing people simply because they create new property, according to a lawsuit.

Joshua and Jessica Jarrett’s complaint, filed Wednesday in the U.S. District Court for the Middle District of Tennessee, asks for just $3,793 in a tax refund, plus interest. But the issue at stake could affect a wide array of cryptocurrency owners at a time when tax authorities are stepping up their cryptocurrency enforcement efforts.

“If the principle gets enshrined into law that newly created property is income, who knows where ...