Why US Lawmakers Want IRS to Chill on Crypto Staking Taxes – Seriously!

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So, 18 U.S. House lawmakers decided that the IRS needed an intervention – like a group therapy session for tax rules. They’re asking the IRS to take a good hard look at those 2023 rules about cryptocurrency staking. You know, because who doesn’t love a little double trouble when it comes to taxes? 🙄

  • These lawmakers think the IRS should hit the brakes and reconsider its guidance on staking rewards before 2026. Because waiting until then would just be too easy! 🎢
  • They’re suggesting we only tax those shiny staking rewards when they’re sold, not when you just happen to own them. It’s called avoiding double taxation, folks! Genius, right? 💡
  • And there’s more! They’ve rolled out the PARITY Act that wants to let people defer their tax liabilities from staking and mining. Because taxes can wait, but your crypto gains can’t, apparently! ⏳

With Republican Rep. Mike Carey leading the charge (probably shouting something like “Taxation without representation!”), they sent a heartfelt letter to IRS acting Commissioner Scott Bessent. Because nothing says “urgent” like a letter, am I right?

In this letter, they express their deep concerns about the IRS’s 2023 guidance on staking rewards-Revenue Ruling 2023-14 (or as I like to call it, “The Ruling That Ruined Everything”). They want answers and a speedy update on these rules before the 2026 tax year rolls around. Talk about a deadline! 📅

According to the IRS’s current guidelines, if you’ve got staking rewards, you have to report them as income the moment you gain control over them AND again when you sell them. Yep, that’s right! Double whammy! 💥 And guess who’s not loving that? Crypto enthusiasts everywhere!

Carey chimed in later, calling it a “big step in the right direction.” Really, Mike? Big? More like a baby step, but I appreciate the enthusiasm! 😅

These lawmakers are pushing for a tax method that only hits you when you actually cash out your rewards. They argue it’s critical for ensuring that stakers are taxed based on their ACTUAL gains and can hold onto their crypto without worrying about the taxman lurking behind every price change. Can you imagine? The horror! 😱

They’re also curious if there are any “administrative barriers” preventing the IRS from getting their act together before 2025. Spoiler: There probably are! 🏗️

Industry leaders are waving the flag for Carey’s initiative, stressing it’s vital for the U.S. to keep its title as the crypto capital of the world. Remember when Trump was all about that crypto life? Good times! 🇺🇸

“Mining and staking are crucial for securing blockchains like Solana,” said Miller Whitehouse-Levine, who sounds like he knows what he’s talking about. He believes fair taxation should encourage these activities, not scare everyday Americans away. Seriously, America, get it together! ⚡

“Staking is key to modern blockchain infrastructure,” added Ji Hun Kim, who clearly isn’t here for the outdated tax rules either. Can we get a round of applause for that insight? 👏

Lawmakers Introduce PARITY Act After Previous Failures

Last year, our heroes Wiley Nickel and Drew Ferguson tried to save the day with the Providing Tax Clarity for Digital Assets Act, but it hit a wall and didn’t go anywhere. Oops! 😬

Now, Representatives Steven Horsford and Max Miller have thrown their hat in the ring with the PARITY Act, proposing taxpayers could defer recognition of those sweet staking and mining rewards for up to five years. Because who wouldn’t want to kick that tax bill down the road? 🚀

And they’re not stopping there! This legislation aims to ease tax burdens on crypto users by giving small stablecoin transactions a break from capital gains taxes. Who knew lawmakers could be so generous? 🎉

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2025-12-22 11:34