Tezos Holders Launch New IRS Lawsuit Over Staked XTZ Tokens
Two Tezos (XTZ) investors are taking the IRS to court once again over the agency’s treatment of their staked XTZ tokens. In a new complaint filed with a Tennessee Federal court, Josh and Jessica Jarrett contend that newly minted tokens from staking should only be treated as taxable if they are sold. “New property is not taxable income; instead, taxable income arises from the proceeds from the sale of that new property. In all other contexts, the IRS recognizes that new property is not taxable income. When a taxpayer creates new property—whether a farmer’s crop, an author’s manuscript, or a manufacturer’s product—he is not taxed until he sells it. Only upon sale of new property does income ‘come in.’ As the leading treatise explained in the year that the income tax was introduced, ‘the measure of taxable net income is not the amount or value of the products of the year’s operation, but the net proceeds of sales.'” The Jarretts fi...