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1099 Tax Issue — DeFi yield farming tax treatment

Started by worried_employee_FL · Jul 14, 2025 · 1,732 views · 16 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
WE
worried_employee_FL OP

Has anyone dealt with something like this? I'm not sure what my options are.

DeFi yield farming tax treatment. I've been dealing with this for about 9 months now and the situation isn't improving.

I have already done some research online but did not get a clear answer.

Am I overthinking this or is this a real legal issue worth pursuing?

NH
need_help_business_owner_question

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

DS
DevOps_Seattle

I've dealt with this before.

In my case, it took about 1-3 months to resolve. The key was escalating to a supervisor/manager.

AH
anon_homeowner_2022

I had a similar issue and ended up consulting with an attorney. It was worth the $200-300 for the initial consultation just to understand my rights.

TL
Mod_TermsLaw Moderator

I've handled similar cases. Here's my take on the legal issues.

This is a common situation and the law is fairly clear. Under the relevant statute, actionable.

You should consult with a local attorney who handles these cases. Many offer free initial consultations.

AB
AgentBroker_TX

I've seen this play out several times in my field.

I ended up filing with the appropriate government agency, which cost about $4-8 but saved me a lot more in the long run.

OD
OpenSourceLawyer_Dan

Been there. Here's what I learned.

In my case, it took about 1-3 months to resolve. The key was escalating to a supervisor/manager.

PB
PatentAgent_Boston

Not a lawyer, but I have direct experience with this.

I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.

DS
DevOps_Seattle

Been there. Here's what I learned.

The biggest mistake people make in this situation is hiring an attorney to send the initial letter. I'd recommend being patient with the process instead.

FT
first_time_dev_legal

Have you tried reaching out to your state's attorney general? They sometimes have free resources or mediation services.

CS
confused_seller_2026

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

AF
asking_for_friend_homeowner_GA

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.

CA
CorpCounsel_Amy

Not a lawyer, but I have direct experience with this.

I ended up escalating to a supervisor/manager, which cost about $1-3 but saved me a lot more in the long run.

AB
AgentBroker_TX

I've dealt with this before.

I ended up filing with the appropriate government agency, which cost about $4-8 but saved me a lot more in the long run.

HM
help_me_trader_today

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

WB
worried_business_owner_CO

I had a similar issue and ended up consulting with an attorney. It was worth the $200-300 for the initial consultation just to understand my rights.

FT
frustrated_trader_2024

NAL, but from what I've read, you should check your state's specific laws. That said, definitely get a lawyer to look at the specifics.

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