Overview
On July 28, Tax Notes quoted Larry Hill in their piece titled, "Staking Case Raises a Question: Can IRS Be Rushed Into Guidance?" The article highlights a cryptocurrency staking case, Jarrett v. United States, that has Sixth Circuit judges questioning if it is appropriate to grant a legislative injunction for an issue the IRS is still reviewing. Sixth Circuit Chief Judge Jeffrey S. Sutton stated, "Government sometimes works better when they take a little time to work through what they want to do…this litigation creates quite a bit of inertia against them."
Larry Hill noted, "At some point, it is only fair that the government fish or cut bait. Here, the government took an affirmative position on taxability in its guidance, but latched on to Chief Judge Sutton's observation during the oral argument that maybe the government needed more time to assess its position because digital currency is an evolving area. If that is the case, the perhaps they should withdraw guidance while they reflect on their position."
Read the full article at Tax Notes (subscription required).
