Cryptocurrencies have become legitimate market movers; so some states, like Illinois, are considering token tax payments.
Illinois Cryptocurrency: Accepting Bitcoin Could Help Cure Budget Problem
Michael Zalewski, a state representative in the Land of Lincoln, introduced a bill that would allow for cryptocurrency tax payments. His rationale is that by accepting bitcoin, and other pre-approved altcoins, Illinois would collect more taxes, which would bolster the state’s bottom line.
Under the proposed system, taxpayers would send crypto to the state, which authorities would convert to dollars within 24 hours of receipt.
Illinois Cryptocurrency: Other States Are Making Similar Moves
You won’t be able to pay this year’s taxes with bitcoin. The bill needs to pass both houses of the Illinois legislature and then signed into law by the governor.
Still, cryptocurrency advocates welcome the news. Hey, if government entities continue to entertain the issue, cryptocurrencies will likely gain wider acceptance.
Lawmakers have introduced similar pieces of legislation in New Hampshire, Arizona, and Georgia. But, so far, none have become law.
Being able to pay taxes with cryptocurrency would be hugely beneficial for token investors. Using the current exchange rate, the average taxpayer in Illinois would easily be able to take care of his or her tax bill by parting with just a single bitcoin.
Connect With An Illinois Cryptocurrency Lawyer
The Gordon Law Group regularly works with cryptocurrency investors and blockchain businesses on everything from contract negotiations to compliance consultations. Additionally, our attorneys are well-versed in various offshore token investment opportunities and asset protecting options.
We’ve built a reputation in the crypto community as straight shooters with inventive solutions. Get in touch today to begin the conversation.