Arizona Authorities Want Bitcoin to Pay Taxes

A new draft submitted to the Arizona Senate, if passed, will allow citizens to pay their tax obligations to the government using Bitcoin or other cryptocurrencies.

Draft 9, supported by Senator Warren Petersen and three other lawmakers, according to public records. Submitted for consideration in January. After the draft was sent, it was forwarded to the Arizona Senate Rules Committee for evaluation.

According to the text, the application to be brought is the “tax and penalty” debts of “a payment method using a peer-to-peer system such as Bitcoin or other cryptocurrencies” to the state government.

Part of the draft submitted to the state:

“Within twenty-four hours of receipt (receipt), the IRS will convert cryptocurrency payments to US dollars at the applicable rate and tax will add the amount of converted dollars to the issuer’s account.”

It is not yet clear whether this practice will take effect in the state of Arizona. A similar effort was made in New Hampshire in 2016, but some legislators have expressed concerns about the issue—mostly about the volatile price of Bitcoin—and have had the bill disapproved.

However, lawmakers in Arizona have in the past. they have approved the blueprints about the technology. Last spring, the state legislature recognized Blockchain signatures and smart contracts as valid under state law. Governor Doug Ducey signed this application last March and made it a law.

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