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- US Congressman Matt Gaetz has introduced legislation that would require the IRS to accept tax paid with Bitcoin.
- If enacted into law, American taxpayers will have the option to pay taxes in BTC.
US Representative Matt Gaetz (R-FL),has introduced a new bill that could see Americans pay their income tax with Bitcoin.
On Tuesday, a news release from the legislator confirmed the new bill, which will mandate the federal government to accept payments of taxes via the cryptocurrency.
Bill would require IRS to accept Bitcoin for tax
Gaetz’ bill proposes an amendment to the US’ Internal Revenue Code of 1986, with the Treasury secretary required to put into place the necessary infrastructure for the IRS to accept BTC.
Notably, US tax regulations mandate individuals to report crypto transactions, with both income and capital gains taxes applicable. But while a few states have looked at use of BTC for tax payments, the federal government does not have such a provision.
“My groundbreaking legislation will modernize our tax system by allowing federal income tax to be paid with Bitcoin,” Congressman Gaetz said in a press release.
The bill requires that among other provisions, the new tax regime that follows ensures “the immediate conversion of any Bitcoin amount received to its dollar equivalent.” This should happen at the end of any such transaction.
“By enabling taxpayers to use Bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer more flexibility to American citizens. This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement,” Gaetz added.
Crypto ahead of US elections
Gaetz, an ally of former US President Donald Trump, brings the new legislative amendments at a time Bitcoin and crypto are increasingly a top issue for both Trump and President Joe Biden. In his case, the Congressman’s target could help spark further traction for the former president.
Already, Trump’s crypto-friendly stance has endeared him to Bitcoin and crypto holders – a group the Republican candidate hopes to bring to his corner come November 2024.
In recent weeks, Trump has met US Bitcoin miners, pledged to end Biden’s “war on crypto” and become the first US president to accept Bitcoin Lightning donations.
On Monday, it was reported that Trump was in talks to attend and speak at the Bitcoin 2024 Convention set for the end of July in Nashville, Tennessee.