Stakers—taxpayers involved in proof of stake (PoS) validation of blockchain transactions—are operating in uncharted tax waters. Treasury and the IRS have provided no guidance regarding when or whether staking rewards are included in taxable income. This article reviews various considerations that may help stakers document activities, rewards and expenses that support their federal and state tax positions.
Taxation of Virtual Currency Staking Activities
By McDermott Will & Emery on September 16, 2020
Posted In IRS Guidance, Tax Reform
