IRS court settlement on crypto tax doesn’t give any clarity: Report
A discussion on the recent lawsuit settlement against the IRS found that people can’t use the result of any case proceeding to remain away from any type of crypto tax rules.
A few days ago, we covered a report and explained that a Nashville couple filed a lawsuit against the IRS in May of last year to get a tax refund. According to the couple they paid tax for that amount of earned tokens through Tezos staking and also they didn’t sell the earned tokens. In the final result of the case, the IRS announced that it will refund $3,793 to the couple.
After the announcement of the refund decision by the IRS, many mainstream media quoted this news and claimed that the IRS can’t take tax from the unsold crypto assets.
For example, Forbes stated that it is a big achievement for the crypto industry investors and also investors may decide to not file their report of staking income.
” Even without this formal court ruling, some taxpayers might decide to follow a bit aggressive approach and not report staking income at the time of receipt.”
Many experts claimed that here the result of this lawsuit doesn’t give any authority or freedom to the crypto investors because people can’t take reference of another case to go outside the laws.
Seth Wilks, head of government relations and SME at TaxBit, also shared his thoughts on this matter in a conversation with crypto news website Cointelegraph.
Seth said that such outcomes of rules don’t prove that the IRS changed its stance from the income generated from staking of crypto assets.
“This case was more about a legal procedure than anything else. There was no court ruling that another taxpayer could point to as precedent. Settling this case was the only thing in.”
Seth also said that the IRS only just settled that case by giving a refund and it doesn’t make sense to consider the outcome blindly without knowing about it deeply.
This expert also said that the Nashville couple has no concerns with its crypto tax matter, instead, it is trying to bring pressure on the IRS agent to give a better clarity on the crypto tax rules.
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