US Congressman Introduces Bill to Enable Bitcoin Payments for Federal Taxes
Enable Bitcoin Payments
The US Congressman Matt Gaetz has put forth a bill that would permit payments of federal income taxes in Bitcoin. This would alter how cryptocurrencies are used by the government if it passes.
Before becoming legislation, the plan must get through some legislative red tape. It happens at a time when cryptocurrency is being used more and more in US politics, as seen by Donald Trump’s pro-crypto campaign and President Joe Biden’s decision to rehire his crypto expert Gaetz is giving Janet Yellen, the Treasury secretary, instructions to develop a strategy for taking Bitcoin. Yellen is well-known for having strong anti-crypto views.
The utilisation of Bitcoin by taxpayers for federal tax payments can foster innovation, boost productivity, and provide greater freedom to people of the United States. This is a brave move that will guarantee that digital currencies are a major part of our financial system in the future and keep the United States at the forefront of technological development.”
Gaetz recently travelled to El Salvador to see President Nayib Bukele’s second inauguration, who is passionate about bitcoin. The congressman’s endorsement of Donald Trump is mentioned in the measure.
Trump, Donald J. credits : The Trump Organisation
The bill’s provisions mandate that regulations define when Bitcoin payments will be accepted and that any Bitcoin received at the conclusion of a transaction be converted immediately to its equivalent in dollars.
The law also calls for regulations to define nontax issues pertaining to Bitcoin payments that the payer and financial intermediaries must handle on their own, independent of Yellen.
The bill also aims to guarantee that Yellen handles tax disputes without the need for financial middlemen. Additional parts include liabilities, fees, and contracts pertaining to accepting Bitcoin payments. The updated wording would be used obligation. The amended phrase would take effect for payments made within a year following the passage of the bill.
Individuals are currently required by the Internal Revenue Service (IRS) to disclose bitcoin transactions and pay taxes on any income or gains from cryptocurrencies.
New Jersey and Kentucky are two states that have begun enacting their own cryptocurrency tax laws. Colorado has even authorised the payment of taxes with cryptocurrencies.