U.S. Taxpayers Deserve Fair Treatment: ConsenSys Supports Jarrett Tax Case Appeal

• ConsenSys has released a statement in support of the appeal of the Jarrett v. United States case concerning taxation of staking rewards.
• The original dispute arose from a claim for a refund of about $4,000 that Joshua and Jessica Jarrett sought on Tezos tokens they validated in 2019.
• The Ethereum Shanghai upgrade scheduled for March will allow validators to withdraw 16 million staked Ether, making the tax treatment of staked crypto a timely issue.

ConsenSys Issues Statement Of Support For Jarrett Tax Case

ConsenSys has released a statement Feb. 7 in support of the appeal of the Jarrett v. United States case concerning taxation of staking rewards. The dispute over a refund of about $4,000 that Joshua and Jessica Jarrett claimed on Tezos tokens they validated in 2019 eventually led to their case being dismissed by a Tennessee district court after the IRS issued the refund they sought; not good enough, they said, so they are appealing that decision and ConsenSys is supporting them.

Background Of The Case

The Jarretts claimed their staking rewards should be treated as property and taxable only upon their sale; however, after the U.S. Internal Revenue Service (IRS) ignored their refund claim, they filed suit in order to get an answer from them which was ultimately unsuccessful leading them to appeal it instead.

Ethereum Shanghai Update

The upcoming Ethereum Shanghai update scheduled for March will give validators access to withdrawals up to 16 million staked Ether coins further emphasizing why this dispute is so relevant now and why ConsenSys is offering its support for it.

ConsenSys Position On Taxation

In its statement regarding this matter, ConsenSys senior counsel and director Bill Hughes stated: “We believe that US taxpayers who run many of the validators on Ethereum deserve fair treatment under the tax code” implying that this is an issue that needs attention sooner rather than later if we want all parties involved to be treated appropriately without any discrepancies or unjust outcomes being produced due to lack of regulation or understanding surrounding cryptocurrency taxation matters overall..

Conclusion

Overall it’s clear that this dispute between Joshua and Jessica Jarrett and The U.S Internal Revenue Service (IRS) has landed itself at an important crossroads due to its implications surrounding cryptocurrency taxation matters as well as financial fairness overall — meaning it’s likely going to continue receiving attention until an appropriate conclusion has been reached one way or another..