Slashdot Mirror

← Back to Stories (view on slashdot.org)

Arizona Introduces Bill That Would Allow Residents To Pay Taxes In Bitcoin (investopedia.com)

Posted by BeauHD on from the first-of-its-kind dept.

In a bid to attract businesses involved in blockchain and cryptocurrencies, Arizona lawmakers have proposed a bill that would allow the state's citizens to pay their taxes in bitcoin. "Arizona State Rep. Jeff Weninger, who introduced the bill, said it was a signal to everyone in the United States, and possibly throughout the world, that Arizona was going to be the place to be for blockchain and digital currency technology in the future," reports Investopedia. From the report: Weninger, a Republican, also cited the ease of making online payments through the cryptocurrency "while you're watching television," as another reason. But he did not divulge much detail about the implementation of such a system. That might be the reason why Weninger faces an uphill battle in getting the bill approved by the state legislature. Bitcoin's price volatility is already being cited as a possible roadblock to implementing such a measure by state legislators. Arizona state senator Steve Farley, a Democrat who's running for governor, said the bill puts the "volatility burden" of bitcoin's price on taxpayers who make payments in U.S. dollars. "It would mean that the money goes to the state and then the state has to take responsibility of how to exchange it," Farley said.

9 of 109 comments (clear)

  1. Good idea by 110010001000 · · Score: 2, Funny

    This is a good idea. I have a significant investment in Bitcoin and this would be a good use for it. I expect massive returns this year on it.

    1. Re:Good idea by rmdingler · · Score: 4, Insightful
      Suspect once you actually pay your taxes with Bitcoin, the State will want you to do some splainin' about your Bitcoin purchase price.

      Investment income, or some such shite.

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    2. Re:Good idea by Actually,+I+do+RTFA · · Score: 3, Interesting

      You're definitely supposed to pay taxes on your bitcoin profits. It's not even close to a question. I'll be amazed if the IRS doesn't start calling on people who cashed in bitcoin and didn't report it. Plus,the fines and interest.

      And, if you timed your sales so that each one is below the 10k reporting level, you might get a fun visit from the FBI for money laundering.

      --
      Your ad here. Ask me how!
    3. Re:Good idea by Actually,+I+do+RTFA · · Score: 3, Informative

      No, but there are laws against arranging transfers into a bank deliberately under $10k. (Or rather, arranging multiple transfers of money into a bank that total $10k for the purpose of hiding the fact that it's a 10k transfer.) It's called structuring. That's cause 10k deposits trigger reporting rules to the IRS that you look like you're trying to avoid.

      --
      Your ad here. Ask me how!
  2. A blockchain and cryptocurrencies tech hub ? by perpenso · · Score: 2

    So how does converting a US dollar tax bill amount to bitcoin in real time and providing a payment address, monitoring that payment address for confirmation, and then immediately converting those bitcoins to US dollars make a region a blockchain and cryptocurrencies tech hub? Especially when much of the preceding will likely be outsourced to an existing bitcoin payment processor.

    1. Re:A blockchain and cryptocurrencies tech hub ? by sheramil · · Score: 3, Funny

      DISTRIBUTED AI quantum nanotech blockchain makerverse!

  3. Really? by glitch! · · Score: 3, Interesting

    First, the state will probably have to process the payments through an exchange to avoid the Btc / Dollar bounces. That's not a huge problem, but one analogous to accepting payments in gold or silver.

    The second issue I see is that payers will have their payment wallet instantly connected to their real identity. Payers who are careful about security can probably avoid this, but how many will think their previous Btc transactions will be anonymous after they willingly give the state a connection by an accidental security lapse?

    I am no Btc expert, so please flay my point if need be.

    --
    A dingo ate my sig...
  4. identity by Anonymous Coward · · Score: 3, Insightful

    Thanks for paying your tax bill using bitcoin, and giving us your bitcoin wallet address which we have now linked to your identity.

  5. Re:Oh for fucks sake no by AHuxley · · Score: 3, Insightful

    The state gov will accept the payment in US cash. The crypto currency needed to make that payment will have to go to an approved 3rd party to make the conversion.
    That "$10k" will be cash when the state accepts the payment. The user paid in crypto currency that was converted by a approved 3rd party as part of the transaction.
    The state will never be out as they have cash just like from any other payment.
    No risk for the state who is still paid in full with US currency and the state gets the optics of "accepting" crypto currency.
    Think of it as the state accepting a CC payment from a private sector bank, from a building society, using "internet" banking.
    The state gets its payment, the user used a CC. Money moved from an approved account to pay the state.
    If that account is now called "crypto currency" from what was "credit card"? The state still gets its cash as the transfer.

    --
    Domestic spying is now "Benign Information Gathering"