On September 19, 2022, Governor Jared Polis of Colorado announced that taxpayers can make payments in cryptocurrency. The eligible tax types include individual income tax, business income tax, sales and use tax, withholding tax, severance tax, and excise fuel tax. Payment will take place through the PayPal Cryptocurrencies Hub and incur additional fees. For processing the transaction, PayPal will charge a service fee of $1 plus 1.83% of the payment amount. Florida and Ohio have previously announced plans for accepting cryptocurrency for tax payments, but such plans have not yet been realized.
Outside the U.S., Venezuela is accepting cryptocurrency as a tax payment. The Swiss canton of Zug, one of 26 canton states in Switzerland, is also accepting cryptocurrency for tax payments.
We will keep you updated with the latest news regarding cryptocurrency and tax payment methods.
TECHNICAL INFORMATION CONTACTS:
Brian Stromen
Principal
Ryan
763.445.4200
brian.stromen@ryan.com
Christopher Potter
Director
Ryan
781.359.3800
christopher.potter@ryan.com
Britte Kirby
Consultant
Ryan
781.359.3800
britte.kirby@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.