ConsenSys, the crypto software company, announced Tuesday that it will financially support an ongoing lawsuit challenging the IRS’s ability to tax staking rewards. Joshua and Jessica Jarrett sued the IRS in 2021 to recover federal income taxes levied on the Tennessee couple’s stake-generated Tezos, claiming that self-generated staking rewards were not taxable income under federal law. The IRS offered to issue the Jarretts their requested refund halfway through the lawsuit, but the plaintiffs declined, preferring to get assurances from a court that the issue would not arise again. However, such assurances were not fulfilled: in October, a federal judge dismissed the case, deeming the Jarretts’ complaints moot after a tax refund was issued.
