Arizona is coming in hot for cryptocurrencies. Lawmakers from The Grand Canyon State are considering a bill that would allow for crypto tax remittance.
AZ Legislators Considering Two Cryptocurrency Tax Bills
Two bills, which representatives hope will seduce blockchain startups to the state, are wending their way through Phoenix. Rep. Jeff Weninger opined:
“We are sending a signal to everyone in the United States, and possibly throughout the world, that Arizona is going to be the place to be for blockchain and digital currency technology in the future.”
Weninger also envisions a smoother, blockchain-enabled tax payment process. “Being able to [pay taxes] in the middle of the night, being able to at home, while watching TV… I think in a few years this isn’t even going to be a question,” he rhapsodized.
The Possible Downside of Paying Taxes With Cryptocurrencies
Not everyone is applauding Arizona’s cryptocurrency tax payment proposal over fears the statute could create more tax liabilities than it alleviates.
If passed, the Arizona Department of Revenue would choose which cryptocurrencies could be used — which raises oversight concerns. Furthermore, due to cryptocurrencies’ fluctuating value, people who remit taxes in tokens may actually trigger additional taxes.
Other States’ Cryptocurrency Stances
Arizona isn’t the only government entity making cryptocurrency news. Other states, like Delaware and New Hampshire, are tweaking laws to attract cryptocurrency and blockchain businesses. New York and Washington, on the other hand, are focusing on consumer protection by enacting crypto licensing requirements.
The IRS Is Paying Close Attention To Cryptocurrency
Legislators are considering cryptocurrency laws — and the IRS is on the hunt for Bitcoin tax revenue.
The agency recently won a lawsuit that forced Coinbase, a popular crypto exchange, to fork over information about accounts that traded $10,000 or more. Industry watchers predict that IRS agents will use the data to track down parties who fail to declare crypto gains.
Connect With A Cryptocurrency Tax Lawyer
If you’re a token investor or business with holdings that has yet to declare Bitcoin, Ether, or altcoin gains, it’s time to get in touch with a cryptocurrency tax lawyer. The IRS and SEC are laser-focused on the issue. Now is the time to get your fintech finances in order.
The Gordon Law Group works with individuals and companies with all manners of tax issues — including cryptocurrency tax compliance.
Get in touch today to start exploring your cryptocurrency tax options — you may have more than you realize.
Contact A Cryptocurrency Tax Lawyer »