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Foreign Account Reporting — DeFi yield farming tax treatment

Started by confused_freelancer_CA · Jun 11, 2025 · 1,183 views · 15 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
CF
confused_freelancer_CA OP

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

DeFi yield farming tax treatment. I've been dealing with this for about 16 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?

TL
Mod_TermsLaw Moderator

Attorney here. Here's my take on the legal issues.

There are several legal theories that could apply here. The strongest is probably the relevant statute, which requires showing actionable.

Before taking legal action, consider sending a formal demand letter. In many cases, this alone resolves the issue.

NT
newbie_trader_today

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

FT
first_time_trader_TX

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.

HM
help_me_seller_legal

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.

TF
TechStartup_Founder

I've dealt with this before.

In my case, it took about 4-8 months to resolve. The key was filing with the appropriate government agency.

CM
ContractorMike_CA

I went through almost the exact same thing.

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

VA
VCAnalyst_SF

I went through almost the exact same thing.

What worked for me was having everything documented. It took 3-6 months but was worth it.

NW
newbie_worker_NY

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

DS
DevOps_Seattle

Been there. Here's what I learned.

What worked for me was filing with the appropriate government agency. It took 4-8 months but was worth it.

WF
worried_freelancer_IL

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

RE
RemoteWorker_EU

I went through almost the exact same thing.

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.

CE
confused_employee_question

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.

HC
HRManager_Chicago

I've dealt with this before.

What worked for me was filing with the appropriate government agency. It took 4-8 months but was worth it.

CT
CryptoTrader_2023

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

The biggest mistake people make in this situation is filing with the appropriate government agency. I'd recommend gathering evidence first instead.

JC
just_curious_buyer_IL

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

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