For the first time anywhere in America, US taxpayers can pay their state business taxes with cryptocurrency. Three month ago, Ohio state announced it would start accepting Bitcoin for tax payments. Payments made on the dedicated portal OhioCrypto.com first go through BitPay and then are converted to USD before being deposited into a state account, according to WSJ.
The idea to pay taxes with Bitcoin came from the state’s Treasurer Josh Mandel. Currently, taxpayers can pay their taxes in Bitcoin, but the Treasurer’s office “looks forward to adding more cryptocurrencies in the future.” Mr. Mandel hopes accepting bitcoin for 23 business taxes will be particularly appealing to tech startups and international businesses.
Ohio filers can pay for twenty-three taxes according to OhioCrypto’s FAQ page. The state plans to eventually accepts payments for individual taxes as well.
Paying taxes with crypto
Businesses can pay their taxes in three quick steps using the Cryptocurrency Tax Payment Portal, mobile phone, or tablet: Register on the portal, enter tax info, and pay with cryptocurrency.
Ohio state recognized that cryptocurrencies is a more secure option, as funds cannot be transferred to third parties without user initiation thereby practically eliminating fraud.
It’s a more affordable option too. After a 3-month introductory period with the 0% transaction fee the transaction fee will be raised to 1% on the amount of the transaction. In comparison, Ohio credit card service providers charges 2.5%. The business taxpayer will pay a minimal transaction fee, network fee, and miner fee.
Is Bitcoin legally recognized now in the US?
No, Ohio’s decision doesn’t give Bitcoin legal status; but it does show an approval of the main cryptocurrency from state regulators and sets a precedent that may be picked up by others.
The Ohio’s move followed a similar decision from the government of Seminole County, Fla., which began accepting payments in Bitcoin for license fees and taxes in late August 2018.
This makes two governments in the United States that have started accepting payments in cryptocurrency.
All crypto enthusiasts hope this is a growing trend that will catch on.
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