A blockchain protocol split called a hard fork that creates a new token doesn’t give rise to taxable income under federal income taxation principles, a couple told the US Tax Court.

Benjamin Rogovy and his wife, Carol Castellon Miranda argued hard forks fail all three prongs of the realized income test established by the US Supreme Court’s decision in Commissioner v. Glenshaw Glass Co., which requires an accession to wealth that’s clearly realized, and over which the taxpayer has complete dominion. None of these elements are satisfied, according to an opening seriatim brief filed July 2.

“First, petitioners never …