Digital Power Network Urges Treasury and IRS to End Unfair Double Taxation of Bitcoin Miners

FOR IMMEDIATE RELEASE

WASHINGTON, D.C. — Today, the Digital Power Network (DPN), the nation’s leading coalition of Bitcoin miners and digital infrastructure developers, submitted a formal letter to Treasury Secretary Scott Bessent and Acting IRS Commissioner Michael Faulkender calling for updated guidance on the taxation of Bitcoin mining rewards.

The letter urges the agencies to revise outdated IRS policy that currently results in double taxation of Bitcoin miners, once when newly mined Bitcoin is created, and again when it is sold. DPN argues this treatment is inconsistent with how other commodities, such as oil, wheat, and gold, are taxed in the United States.

“Bitcoin is widely recognized by the SEC, CFTC, and federal courts as a commodity,” said Hailey Miller, Director of Government Relations and Public Policy at DPN. “Yet IRS policy treats it like a wage, not a resource. This outdated approach penalizes American Bitcoin miners and discourages investment in U.S. digital infrastructure.”

Under current guidance (Notice 2014-21), the IRS requires miners to treat block rewards as immediate taxable income upon creation, effectively taxing Bitcoin twice. DPN is calling on the IRS to treat mined Bitcoin as created property, aligning tax treatment with other commodity-producing industries. This would ensure taxation occurs only at the point of sale, not at creation.

While DPN supports a long-term legislative fix, the organization’s letter makes clear that Treasury and the IRS can resolve this issue immediately through administrative guidance, without waiting for Congress.

“American miners are being punished for creating value. No other commodity producer is taxed this way,” said Miller. “We’re urging Treasury to fix this now and restore basic fairness.”

The full letter is available here.

About the Digital Power Network (DPN): 
DPN is the largest coalition of Bitcoin miners in the United States, representing over 50% of domestic hash rate. Through public policy advocacy, industry coordination, and infrastructure innovation, DPN promotes responsible energy use, national security, and economic growth in the digital asset sector.