IRS Audit | DeFi yield farming tax treatment

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Illustrative scenario prepared by my practice.
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Hypothetical question

I'm dealing with a situation and need some guidance.

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 got conflicting advice.

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

Illustrative response

I mean following this thread — Same. 100% same. Please update.