Ledgible, a professional-first platform for tax and accounting of crypto assets, announced upcoming reporting options for staking rewards in light of the recent lawsuit against the IRS over staking rewards, released by the Proof of Stake Alliance (POSA).
Near the end of last year, Proof of Stake (PoS) tokens represented 30 percent of the total crypto market. If Ethereum completes its move to Proof of Stake, PoS chains would be near half of the crypto market cap.
As crypto staking continues to expand in use-cases and functionality, Ledgible has devoted its development resources to fully supporting the crypto space and any changes it might bring to how crypto users and traders might need to file taxes.
As noted from the release from the POSA, and as part of ongoing federal litigation (Jarrett v. United States, No. 3:21-cv-00419 (M.D. Tenn.)), the IRS backing down from taxing staking rewards on their creation is significant and stands in contrast to how the IRS has historically discussed taxation on cryptocurrencies.
Ledgible is designed to ingest the complexities of the cryptocurrency space, translating them into traditional financial tax and accounting platforms, making crypto legible for tax professionals and consumers alike.
UPDATE: Today, the POSA announced that the government has offered to refund plaintiff Joshua Jarrett for the taxes he paid when he created new property through staking, a sign that the IRS may no longer attempt to tax tokens created through staking moving forward. Jarrett is refusing the refund and continuing with his case, as without such a ruling there will be nothing to prevent the IRS from challenging him again on this issue.