Golden Finance reports that the U.S. Internal Revenue Service (IRS) stated in a lawsuit that staking cryptocurrencies should generate tax liability immediately upon completion. The IRS dismissed a lawsuit filed by cryptocurrency investor Joshua Jarrett in the U.S. District Court for the Middle District of Tennessee. The lawsuit concerns the tax treatment of staking, a process in which new tokens are generated by using existing tokens and computing power to verify currency transactions. In its response on December 20, the IRS denied that staking created new property and argued that the taxpayer (Jarrett) should pay taxes on the value of the tokens as rewards for staking when they receive them.