An important crypto tax case has emerged in the U.S. District Court in the Middle District of Tennessee, (Jarrett v. U.S.). In the Jarrett case, the taxpayers owned a certain cryptocurrency and engaged in staking activities, and the IRS then taxed their staking rewards as ordinary income. The… Read More
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The Truth about Cryptocurrency and Illicit Activities
It must be nice to create a false narrative on a whim. This is exactly what the Department of Treasury (IRS) has done with cryptocurrency. In all of this, one thing is clear – the IRS misunderstands cryptocurrency. It is a sad situation really – as crypto could… Read More
New IRS Crypto Tax Rule on Transfer Over $10,000
The Department of Treasure has issued new guidance that it plans to implement a new requirement for crypto transfers of at least $10,000 be reported to the Internal Revenue Service. This requirement is akin to cash transactions greater than $10,000. Continuing its rhetoric about crypto and criminal activity,… Read More
Is Crypto Staking Taxable Income?
In a novel crypto tax case out of the U.S. District Court for the Middle District of Tennessee, a taxpayer has challenged the IRS’s ability to treat staking rewards as ordinary income. The taxpayer asserts that staking rewards are the creation of new coins, and that this process… Read More
“Flora” full payment rule does not apply to FBAR penalties
It is well established that a taxpayer must pay all tax first before filing a refund suit against the IRS in Federal District court. This is called the Flora rule. In Mendu v. United States, the Court of Federal Claims held that penalties for failure to timely file… Read More
Does Kraken Report to the IRS?
On May 5, 2021, a California District Court issued an order authorizing the IRS’s John Summons against Kraken, a popular cryptocurrency exchange. The summons seeks to obtain information on US taxpayers who conducted at least $20,000 in total transactions for each year from 2016 to 2020. This is… Read More