The Internal Revenue Service (IRS) of the United States, which handles corporation, gift, excise, and estate taxes from mutual funds and dividends, has chosen not to tax unrealized gains from crypto staking or mining digital assets. This is a massive relief since many crypto supporters have been standing up against these proposed taxes in recent months.
Casey Wagner from Blockworks was the first to report this news. She claims that a Nashville couple would get a tax return for unsold tokens placed on the Tezos blockchain network. This clarifies the tax treatment of cryptocurrencies that have been staked. According to those who are familiar with the issue, the IRS has given the couple a refund for rewards that they have earned but have not yet redeemed. As per her tweet :
BREAKING: IRS WILL NOT TAX UNSOLD STAKED CRYPTOCURRENCIES AS INCOME
— Casey Wagner (@caseywagnerr) February 3, 2022
The couple argued in their defence that token rewards received through PoS protocols are “taxpayer-created property.” As a result, they are not subject to taxation until they are sold, according to the IRS rules and regulations. According to Blockworks, official court documents will be made public on Thursday, February 3.
Despite the fact that cryptocurrencies are traded internationally, various governments approach cryptocurrency taxation differently. During its last budget session on February 1, India declared a 30% tax on cryptocurrency. Indian Prime Minister Narendra Modi has also requested the G20 nations for support in regulating digital assets and developing a common framework.
However, on the same day that India imposed high taxes on cryptocurrency, Thailand chose to remove a 15% capital gains tax on cryptocurrency in response to widespread public outrage. Furthermore, according to a recent report, cryptocurrencies would be tax-free in Portugal.
Read more:
 of the United States, which handles corporation, gift, excise, and estate taxes from mutual funds){kind=link}