ConsenSys supports the Jarrett tax case in the U.S.: it involves the taxation of staking rewards and is closely related to the Shanghai upgrade

2023-02-08 08:52:21

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ChainCatcher news, according to Decrypt, ConsenSys announced yesterday its support for the Jarrett couple's appeal to the IRS regarding the taxation of staking rewards. The case stems from Joshua and Jessica Jarrett being taxed approximately $4,000 on their staking earnings from XTZ tokens.

The Jarretts claim that staking rewards should be considered property and taxed only upon sale, and they rejected the IRS's refund request in 2022, seeking to ensure that this legal issue is thoroughly resolved. However, a U.S. District Court in Tennessee dismissed their lawsuit last October, and the Jarrett couple continues to appeal.

ConsenSys stated, "We support Josh and Jessica Jarrett's appeal because we believe that American taxpayers running many validators on Ethereum should be treated fairly under tax law." ConsenSys pointed out that the Ethereum Shanghai upgrade scheduled for March will allow validators to withdraw 16 million staked ETH, necessitating timely resolution of the tax issues surrounding staking cryptocurrency. (source link)

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ConsenSys Ethereum Shanghai Upgrade

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