Claimants believe that the crypto assets acquired by staking or mining are a created property. Specialists argued if the IRS offer could set a judicial precedent.
The United States Tax Service (IRS), right after facing a lawsuit, is now willing to refund the amount paid by a couple from Tennessee for staking on the Tezos blockchain.
The argument of the users, the Jarret couple, is that the tokens they acquired are property created by the taxpayers. These tokens, according to the couple, should not get taxed unless they get sold or exchanged. They base their idea on the fact that no tax law or regulation in the United States of America allows created property to get taxed as income.
The Jarretts showed a rejective stance on the IRS offers because they should also charge compensatory interest for lost earnings. In total, they would receive a refund of at least USD 3,793. The case currently waits for a judicial resolution, which could happen between March of this year and March 2023. The court order highlighted that a group of experts in the area will get consulted before deciding what to do about the situation.
Some experts consider that the willingness of the Tax Service to offer a refund could mark a new precedent for future cases of taxes that miners and stakers in the North American nation will have to pay.
On the other hand, various experts in public policy and taxes consider that what happens here is an offer or agreement, and it is not in any way equivalent to a binding precedent.
Bitcoin Miners Need More Regulatory Clarity
The lack of regulatory clarity on cryptocurrency mining and staking in the United States of America got hit by various critics describing it as a factor that could discourage those enthusiasts who carry out activities in this financial environment.
Considering the exodus of miners that once they got expulsed from China, they started to look for a new place to carry out their activity, this event could represent a lost opportunity.
The United States of America became one of the most relevant regions to carry out mining activities but, some situations at the tax level make it difficult to predict how the phenomenon would continue to evolve.
Other countries are also rising as potential destinations for Bitcoin miners to carry out their activities. In Latin America, Paraguay is the most prominent country regarding Bitcoin; it has low-cost hydroelectric power and a State that has explicitly declared its support for mining. Also, El Salvador itself became a Bitcoin miner and is now a potential destination for miners that got exiled from the Asian region.
By: Jenson Nuñez
