No, IRS may not write off taxes on crypto staking rewards so easily, claim experts

ambcrypto.com:

Crypto news was abuzz recently with speculation of the U.S Internal Revenue Service (IRS) writing off the tax on income generated from unsold staked cryptocurrencies. Many, including crypto influencers on social media revered the implication derived from a district court ruling in Nashville.

However, experts are now claiming that the industry might have been too quick to rejoice, and the precedents set from this single case could not be as far-reaching as was earlier thought.

It all began when news broke of Joshua and Jessica Jarrett being reimbursed $3,293 in income tax (plus statutory interest) by the IRS for 8,876 Tezos tokens they had obtained through staking. The couple had filed a civil lawsuit in May last year claiming that until the staked tokens are sold, it cannot be considered a taxable event since tokens gained through staking should be considered as the acquisition of new property rather than income.

Many in the crypto sector began to believe that this could set a large precedent on how taxes on crypto gains are calculated, with unsold tokens gained through staking becoming nontaxable.