ConsenSys will support an ongoing lawsuit against the IRS for tax staking rewards.

 

ConsenSys will support an ongoing lawsuit against the IRS for tax staking rewards.  ConsenSys says it will back the appeal of the Jarrett v. United States case involving the taxation of staking rewards.  Joshua and Jessica Jarrett disputed with the IRS over a $4,000 tax refund for staking Tezos tokens.  They argued that their staking rewards should be treated as "created property."  Created property is not taxed until the sale.  The IRS ignored the refund request, and the Jarretts filed a lawsuit.  The IRS did end up issuing a refund in 2022, but the Jarretts preferred to continue with the lawsuit.  The courts dismissed their suit, and the Jarretts are now appealing the case. Consensys has offered financial support to cover the cost.  Consensys noted that the Ethereum Shanghai update is scheduled for March, allowing validators to withdraw 16M staked Ether, a timely issue for the upcoming tax season.