Ohio is the first state to accept bitcoin for paying business taxes:
There's a lot of legal uncertainty in the US surrounding cryptocurrency, but Ohio is pressing forward. As of this week, it'll be the first state to accept bitcoin for paying tax bills. The Wall Street Journal notes this will be limited to businesses purposes and isn't going directly into Ohio's coffers (an Atlanta firm, BitPay, converts the virtual cash to dollars first). However, it could still be much more convenient for shops that take bitcoin and would rather not exchange the format just to cover their sales tax payments.
You should eventually have the option of paying personal taxes with bitcoin.
From the https://ohiocrypto.com/ web site:
- QUICK & EASY: Businesses can pay their taxes in three quick steps using the Cryptocurrency Tax Payment Portal.
- REAL-TIME TRACKING: Payments on the blockchain can be tracked on a second by second basis.
- SECURE PAYMENTS: Cryptocurrencies cannot be transferred to third parties without user initiation, thereby practically eliminating fraud.
- LOW FEES: A minimal fee is charged to confirm transactions on the blockchain network.
- TRANSPARENCY: Anyone can view all transactions on the blockchain network.
- MOBILE OPTIONS: Easily make tax payments on your mobile phone or tablet.
(Score: 1, Interesting) by Anonymous Coward on Monday November 26 2018, @02:40PM (1 child)
The bitcoin is handed directly to bitpay. They in turn process it, filing the transfer record attached to your ohio tax form payment stub.
Ohio gets their amount, and bitpay gets some percentage tacked on above that as the transaction fee. This is of course ignoring the fact that paying with bitcoin nets you double transaction fees, and the percentage was last I checked between 1 and 10 percent when bitcoin was under high demand. I imagine the transaction fees have gone up since as the price of bitcoin dropped.
(Score: 2) by legont on Tuesday November 27 2018, @01:56AM
Do Ohio charge taxpayers capital gain tax when their affiliates convert bitcoins to dollars, that's the question. What about federals?
"Wealth is the relentless enemy of understanding" - John Kenneth Galbraith.