The Crypto Tax Bill Gets Block Rewards Wrong

- Holy Kingston shrimp — Congress is about to file taxes on money that doesn't exist yet. The Ways and Means Committee's crypto tax bill keeps the good parts (simplified accounting, hallelujah for the meat wallets) but Section 401 sneaks in "validation income" as ordinary income, endorsing the IRS's 2022 position that minting block rewards creates income on creation. Coin Center's argument: newly created tokens are property, not income — Jason Dollars cut from construction paper don't owe the taxman until sold. Call it creative compliance from the other side. With the Jarrett lawsuit awaiting summary judgment, this bill risks stamping a regulator's PoD seal on a contested premise Congress supposedly left open. Not on the manifest! A certainty bill shouldn't decide questions it claims not to answer. «Form 27B/6 for moon jurisdiction pending.» Sign here — or audit prison.