Companies in Ohio Are Now Paying Tax in BTC
Update – The IRS published guidelines about taxing cryptocurrency holdings in October, addressing cost basis and forks, two long-standing questions the crypto community has had. This guidance raised number of new questions about airdrops and unwanted forks.
This guidance appears to suggest individuals are liable for taxes on any cryptocurrencies they gain as a result of a hard fork or airdrop, regardless of whether or not they’re aware they received these cryptocurrencies.
“This creates potentially unwarranted tax liability and administrative burdens for users of these important new technologies and would create inequitable results,” the letter said. “We do not expect this is the intended effect of the guidance, and we urge the IRS to clarify the matter.”
This letter is one of the letters sent by laymakers to the IRS asking the agency to clarify how it is approaching the crypto space.
Previously
Robert Sprague, the Treasurer of the U.S. state of Ohio has made it known that two companies already opted for Bitcoin as a form of payment for their taxes, a recent report says. Sprague, however, didn’t reveal the exact amount paid or the companies involved because of a confidentiality clause.
Ohio Looking to Expand its Crypto Space
Robert Sprague said: “We’re reviewing how [the program] might be either curtailed or might be expanded, and what our counter-party risk is with that vendor.”
Bitpay, the company which was employed by the state to execute bitcoin payments and convert cryptocurrency into fiat money before it is forwarded to the Ohio treasury is in charge of receiving and holding bitcoin and not Sprague.
When the project was launched 3 months ago, Sprague revealed that it would help enhance the way business is being handled in the state and also help bring in new clients.
He added that:
“We applaud the pilot that makes Ohio more business-friendly and sets us up as a leader in cryptocurrency. We will evaluate both currency and counter-party risk once we enter the office to see about the future,”
Ohio Lawmakers are Working Hard
Recent events have shown that Lawmakers in Ohio are hoping to transform the state into a major
He said:
“You’re either ahead of the curve or you’re behind the curve, and our country is in an interesting position right now – we need to be seen as a progressive country,” Hughes said at the time. “We are at a crossroads and we’re about to determine our future – one in which taking the lead in this field could prove very beneficial.”
