The IRS has confirmed that rewards earned from staking cryptocurrency are taxable in the year they are received, according to a recent ruling. This decision aligns with the IRS's stance since the Jarrett case, which argued that staking rewards should not be taxed until they are sold. However, the IRS maintains that staking income represents a realized accession to wealth that the taxpayer has complete control over, and therefore must be included in gross income.

This ruling has implications for cryptocurrency stakers and emphasizes the importance of proper tax reporting. A cryptocurrency tax specialist in New York City believes that the ruling confirms the IRS's position and could result in future penalties, but also anticipates additional guidance being released soon.