Crypto Tax Legislation Tracker

Besicorp: Penalty Approval, Tax Court decisions, and CDP Verification

In Besicorp Group, Inc., et al. v. Commissioner, the Second Circuit held that Settlement Officers must verify compliance with IRC § 6751(b)(1) during CDP hearings, even for penalties assessed via a Tax Court decision. The IRS will likely seek an en banc rehearing of the case in the Second Circuit and argue against it in other circuits.

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Staking Rewards: Unpacking Paschall

In Paschall v. Commissioner, T.C. Memo. 2026-46, the US Tax Court held that staking rewards received through a custodial staking-as-a-service arrangement are taxable as ordinary income at fair market value when received rather than at when they are sold in the future.

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