IRS proposes electronic crypto tax forms, but what about the staking tax issue?
The U.S. Treasury and IRS have proposed requiring crypto brokers to use electronic delivery for tax forms by default, eliminating the costly and burdensome practice of mailing paper copies. This aims to streamline tax reporting for exchanges with large user bases. However, a major unresolved issue remains the double taxation of crypto staking rewards. Currently, the IRS treats staking rewards as taxable income upon receipt and also applies capital gains tax when the assets are later sold at a profit. Lawmaker Mike Carey is urging the IRS to review and resolve this issue to prevent driving investors to more lenient offshore jurisdictions. The IRS has indicated it will brief lawmakers on its ongoing review of staking tax treatment.
ambcrypto03/06 09:45
