Tezos node operator Josh Jarrett is once again suing the Internal Revenue Service (IRS) to treat staking rewards as property rather than income. Jarrett previously filed a lawsuit in 2021 against the 2019 tax bill, but the case was dismissed in 2024 as "meaningless". In this lawsuit, Jarrett and his wife seek a tax refund for 13,000 Tezos tokens acquired in 2020, and ask the court to prohibit the IRS from treating staking rewards as income. Jarrett argues that the tax should be levied when the tokens are sold, not when they are acquired. Organizations such as Coin Center support this lawsuit, arguing that current policies will inhibit participation in decentralized networks.