https://www.zerohedge.com/news/2018-02-11/arizona-senate-passes-bill-allow-tax-payments-bitcoin
So.... instead of the tax payer "converting his BTC to $USD and paying the tax"... he can now pay with Bitcoin. And with BTC's volatility... When is the tax considered "paid" and at what value the BTC/$USD conversion?
1. When the payment is sent?
2. When it is received?
3. Filing/payment deadline... "last day to pay without penalty"? What if the State delays a bit in converting to $USD and the BTC/USD conversion declines? Who makes up the diff?
The State now takes the risk of volatility. What if BTC declines so that upon conversion there is still a "balance of tax due in $USD?" Does the state just "eat it"? (Yeah, like that would ever happen.) Does it send the tax payer a bill for the unpaid "conversion" balance? Does it just "pass the deficit along to all tax payers in next year's tax levy?
Could they BE any more stupid?
Sheesh!
So.... instead of the tax payer "converting his BTC to $USD and paying the tax"... he can now pay with Bitcoin. And with BTC's volatility... When is the tax considered "paid" and at what value the BTC/$USD conversion?
1. When the payment is sent?
2. When it is received?
3. Filing/payment deadline... "last day to pay without penalty"? What if the State delays a bit in converting to $USD and the BTC/USD conversion declines? Who makes up the diff?
The State now takes the risk of volatility. What if BTC declines so that upon conversion there is still a "balance of tax due in $USD?" Does the state just "eat it"? (Yeah, like that would ever happen.) Does it send the tax payer a bill for the unpaid "conversion" balance? Does it just "pass the deficit along to all tax payers in next year's tax levy?
Could they BE any more stupid?
Sheesh!
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