For many crypto-investors, thinking about taxes is a difficult subject. Figuring out how much you owe, trying to minimize your tax burden, locating an accountant who even knows what crypto is. It can be quite stressful.
Several states, however, are looking to make it a little easier. In fact, they are considering options for letting people pay their tax bill with cryptocurrency! Illinois, for example, has House Bill 5335, known as the Revenue Cryptocurrency Bill, under consideration now. This bill would state that the state will accept payment for any taxes in cryptocurrency.
The cryptocurrency that people pay in would be sold ‘at the prevailing rate’ within 24 hours so that they are still getting US Dollars, but the concept is quite interesting.
Similar bills are also being considered by both Georgia and Arizona, where they are specifically looking at taking payments in Bitcoin.
Having this as an option will be nice for many people, but the real positive news is that the states are obviously looking at crypto in a positive way. Many people in the past have worried that state and federal governments would take a more negative approach to cryptocurrency. In fact, some believed that governments would try to shut it down since crypto is essentially a competing currency that they can’t control.
While that is still a possibility, it seems less likely. For now. If any of these three bills pass, it will set a great precedent for state governments in the US not just tolerating crypto, but actively working with it. Needless to say, this will also get cryptocurrency some additional attention from potential investors.
