IRS: Staking rewards obtained on POS blockchain are taxable

ChainCatcher News, the latest tax guidelines from the IRS outline how and when to tax cryptocurrency staking rewards. According to a decision released by the IRS on Monday, cryptocurrency investors who receive rewards for validation activities on proof-of-stake (POS) networks should include these rewards in their income for the year in which they gain control of the tokens.

According to the legal analysis, "the fair market value of the validation rewards received is included in the taxpayer's total income for the tax year in which the taxpayer gains dominion and control over the validation rewards." The analysis states that the value should be calculated from the moment the U.S. taxpayer gains control of the tokens.

The IRS noted in the guidelines that if "the taxpayer receives additional units of cryptocurrency as a reward for validation," this rule also applies to investors who stake tokens through cryptocurrency exchanges.