In November 2018, Ohio became the first state to allow business owners to use bitcoin and other cryptocurrencies to pay their taxes.
According to The Wall Street Journal, businesses can use this method to pay taxes on anything from employee withholding to cigarette sales.
Josh Mandel, Ohio state treasurer, conceptualized this program. The ultimate goal of accepting cryptocurrency for tax payments is to show that Ohio wants to rebrand itself and usher in a new era as being tech-friendly.
Three other states (Arizona, Georgia and Illinois) considered allowing for bitcoin payments; however, those initiatives never made it past their state legislatures. Businesses who wish to pay their taxes with cryptocurrency can register with the state, enter their tax information and then pay with cryptocurrency.
Benefits of paying with cryptocurrency
- Real-time tracking: Payments can be tracked along the blockchain to the second.
- Secure: No third party can have a cryptocurrency transferred; therefore, fraud is practically impossible.
- Mobile pay: You can make payments via your tablet or phone.
- Quick and easy: Once you’re registered, the cryptocurrency tax payment portal is simple to use.
- Transaction transparency: All transactions can be viewed along the blockchain network.
- Low fees: Transactions on the blockchain are minimal.
Despite the new law, it’s yet to be seen if any businesses will utilize the option. Cryptocurrency is also being increasingly used for payment on cloud platforms.
