Cryptocurrency tax on token makers challenged in a brand new lawsuit

Newly created cryptocurrency tokens cannot be taxed as income because federal income tax laws do not allow people to be taxed just because they create new property, according to a lawsuit.

Joshua and Jessica Jarrett’s complaint, filed Wednesday in the U.S. District Court for the Middle District of Tennessee, calls for a tax refund of only $ 3,793 plus interest. However, the problem could affect a wide variety of cryptocurrency owners if tax authorities step up their cryptocurrency enforcement efforts.

“If the principle is enshrined in law that newly created property is income, who knows …