Jarrett v. IRS (Staking Rewards)

Jarrett sues the IRS in an effort to block the taxation of cryptocurrency earned through staking.

The Sixth Circuit clarified that barring the IRS from treating cryptocurrency as income would illegally restrain tax collection and violate the ban on declaratory judgments in federal tax cases. However, the court left open the question of whether the IRS can tax cryptocurrency at the point of creation.

22-6023