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Ohio becomes the first state to allow taxpayers to pay tax invoices using cryptocurrency

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By now most taxpayers understand that there are tax consequences associated with cryptocurrency, but ironically, until recently, those taxes could not be paid using cryptocurrency. He is about to change: With the launch of OhioCrypto.com, Ohio will become the first nation state to accept tax payments via cryptocurrency.

"We are proud to make Ohio the first nation state to accept tax payments via cryptocurrency," said Ohio treasurer Josh Mandel. "We are doing it to provide Ohioians with more options and facilities to pay their taxes and also to project the Ohio leadership into the blockchain technology."

With the new payment system, not all tax payers can make the payment in cryptocurrency: it is limited to companies operating in Ohio. Offering service to individual tax payers is on the agenda, but Mandel has not specified any specific term for expansion.

Here how does it work: If you manage a business in the state of Ohio and you have a tax invoice, you can do it register online on OhioCrypto.com to pay taxes. You can make payments on each of the 23 taxes related to commercial activities (you can find a list Here), and there is no transaction limit.

The Treasurer's office does not hold, extract or invest in cryptocurrency for payments or processing. All cryptocurrency payments are processed by a third-party cryptocurrency payment processor, BitPay. These payments are immediately converted into dollars before being deposited in a state account. & Nbsp;

"The state of Ohio is the first major government entity that offers its citizens the ability to pay with cryptocurrency," said Stephen Pair, co-founder and CEO of BitPay. "With BitPay, Ohio can leverage blockchain technology and benefit from a reduction in risk and identity fraud, as well as enabling quick and easy payments from any device anywhere in the world and getting paid in dollars, this vision is at the forefront of transferring blockchain payments in traditional adoption ".

You will need to use the wallets compatible with the payment protocol to pay. Those include BitPay Wallet; Copay wallet; BTC.com Wallet; Mycelium Wallet; Edge Wallet (formerly Airbitz); Electronic wallet; Bitcoin Core Wallet; Bitcoin.com Wallet; BRD Wallet (breadwallet); and Bitcoin Cash portfolios (BCH). If you do not have one of these wallets, OhioCrypto.com he advises you to create one and send some money to it.

Currently, the Treasurer's office only accepts Bitcoin for payment, but the plan is to add more cryptocurrencies in the future.

There is a cost associated with cryptocurrency payment (it is worth noting that taxpayers who pay via credit or debit cards are also subject to fees from payment service providers, but do not receive any commission through the office of the treasurer). Taxpayers who pay using the cryptocurrency are charged a transaction fee, a network commission, and a commission for miners. & Nbsp; The tax for miners will appear in the tax payer's wallet and not on OhioCrypto.com. The transaction fee will be 0% during an initial period of three months and, after this period, will be equal to 1%. & Nbsp;

(An e-mail to the Treasurer's office on any cost to the state of Ohio for the service was not returned immediately).

What you need to know about Taxes & Cryptocurrency

Forbes Kelly Phillips Erb

It will be interesting to see if other state governments will follow the example. Eventually an account to accept bitcoin as payment for taxes & nbsp;voted down, From 264 to 74, from the New Hampshire legislature in 2016. A similar measure & nbsp;in Utah& nbsp; also failed to pass while an invoice to accept encryption for payments in Georgia arrested at the start of this year. However, the states are still trying: the state legislature of Arizona actually passed & nbsp;a cryptographic payment measure, but was vetoed on May 16, 2018.

The Internal Revenue Service (IRS) currently does not accept cryptocurrency as payment. By law, the IRS issues regulations (interpretations of the tax code) and other indications on the types of payment that can be used to pay taxes. & Nbsp; The IRS has authorized payment by check, money order, credit card and debit card, but not by Bitcoin or other cryptocurrencies. (You can find other ways to pay for your IRS tax receipt Here.)

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Getty

By now most taxpayers understand that there are tax consequences associated with cryptocurrency, but ironically, until recently, those taxes could not be paid using cryptocurrency. This is about to change: with the launch of OhioCrypto.com, Ohio will become the first nation state to accept tax payments via cryptocurrency.

"We are proud to make Ohio the first nation state to accept tax payments via cryptocurrency," said Ohio treasurer Josh Mandel. "We are doing it to provide Ohioians with more options and facilities to pay their taxes and also to project the Ohio leadership into the blockchain technology."

With the new payment system, not all tax payers can make the payment in cryptocurrency: it is limited to companies operating in Ohio. Offering service to individual tax payers is on the agenda, but Mandel has not specified any specific term for expansion.

Here's how it works: If you run a company in the state of Ohio and have a tax invoice, you can register online at OhioCrypto.com to pay taxes. You can make payments on any of the 23 fees related to the business (you can find a list here) and there is no transaction limit.

The Treasurer's office does not hold, extract or invest in cryptocurrency for payments or processing. All cryptocurrency payments are processed by a third-party cryptocurrency payment processor, BitPay. These payments are immediately converted into dollars before being deposited in a state account.

"The state of Ohio is the first major government entity that offers its citizens the ability to pay with cryptocurrency," said Stephen Pair, co-founder and CEO of BitPay. "With BitPay, Ohio can leverage blockchain technology and benefit from a reduction in risk and identity fraud, as well as enabling quick and easy payments from any device anywhere in the world and getting paid in dollars, this vision is at the forefront of transferring blockchain payments in traditional adoption ".

You will need to use the wallets compatible with the payment protocol to pay. Those include BitPay Wallet; Copay wallet; BTC.com Wallet; Mycelium Wallet; Edge Wallet (formerly Airbitz); Electronic wallet; Bitcoin Core Wallet; Bitcoin.com Wallet; BRD Wallet (breadwallet); and Bitcoin Cash portfolios (BCH). If you do not own one of these wallets, OhioCrypto.com recommends you to create one and send it with a coin.

Currently, the Treasurer's office only accepts Bitcoin for payment, but the plan is to add more cryptocurrencies in the future.

There is a cost associated with cryptocurrency payment (it is worth noting that taxpayers who pay via credit or debit cards are also subject to fees from payment service providers, but do not receive any commission through the office of the treasurer). Taxpayers who pay using the cryptocurrency are charged a transaction fee, a network commission and a commission on miners. The cost of the miner will appear in the tax payer's wallet and not on OhioCrypto.com. The transaction fee will be 0% during an initial introductory period of three months and, after this period, will be equal to 1%.

(An e-mail to the Treasurer's office on any cost to the state of Ohio for the service was not returned immediately).

What you need to know about Taxes & Cryptocurrency

Forbes Kelly Phillips Erb

It will be interesting to see if other state governments will follow the example. A bill to accept bitcoins as payment for taxes was finally voted down from 264 to 74 by the New Hampshire legislature in 2016. A similar measure in Utah failed to pass while a bill to accept the encryption for payments in Georgia has stalled at the beginning of this year. However, the states are still trying: the state legislature of Arizona has effectively approved an encryption measure, but was vetoed on May 16, 2018.

The Internal Revenue Service (IRS) currently does not accept cryptocurrency as a payment. By law, the IRS issues regulations (interpretations of the tax code) and other indications on the types of payment that can be used to pay taxes. The IRS has authorized payment by check, money order, credit card and debit card, but not by Bitcoin or other cryptocurrency. (You can find other ways to pay for your IRS tax receipt here.)

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