Due to the outcome of the latest court battle leading to this development, the IRS may not impose income taxes on pledged and unsold cryptocurrencies, so let's learn more in an upcoming cryptocurrency update.

The IRS and the IRS may not impose income taxes on unsold and pledged cryptocurrencies. The agency added that it will refund taxes paid by the Nashville couple on some of the tokens they acquired through pledges on the Tezos network. According to a Forbes report, RIS noted that it will refund the couple $3,293 in income taxes and interest paid on the 8,876 tezos tokens pledged. Joshua and Jessica Jarret, a couple who filed a civil lawsuit in the U.S. District Court for the Middle District of Tennessee, are seeking a refund of the $3,293 in income taxes they paid in 2019 on the tokens they received from the pledge. The couple is insisting that they make up for the lost revenue by adding a $500 tax credit.

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In court documents, the couple noted that they received the tokens through a proof-of-stake agreement and that they should be treated as new property created by the taxpayer, not as income. As such, the new property should not be taxed until it is sold or eventually exchanged for obtainable wealth. While the couple won their IRS case allowing them to receive a refund of 2019 taxes on the pledged tokens, it remains unclear if the agency has more plans to update its official guidance regarding cryptocurrency taxes.

However, according to confidential sources familiar with the matter, the couple is aiming to take the case further so that they can obtain long-term protection. The couple's move could set a precedent for anyone looking to profit from the fast-growing cryptocurrency pledge industry, which is currently estimated to be worth $18 billion. In addition, the Indian government may soon abandon plans to ban digital currencies, but the country's authorities have moved to provide regulatory clarity to the cryptocurrency market and impose a 30 percent tax on such income.

As recently reported, the UK government has updated cryptocurrency tax rules to govern decentralized finance and pledging.