Illinois Considering Bitcoin for Tax Duties

Lawmakers in Illinois are now considering a proposal which involves allowing residents in the state to pay their taxes in Bitcoin and other digital currencies.

Illinois has now joined a growing list of states in the United States of America that are making such move, and this marks the third time a U.S. state has made the effort in 2018. Arizona was the first state to pass a bill that aimed to allow residents in the state to pay their taxes with cryptocurrencies, then Georgia followed suit.

The bill states: “In addition to any other method of payment provided for by law, the Department shall accept payment for any tax imposed by the State and administered by the Department by cryptocurrency.”

The measure will allow for the use of a payment gateway, such as Bitcoin or other cryptocurrencies, using peer-to-peer systems in order to pay tax and any interest and penalties owed to the state government.

Illinois’ House Bill 5335 was passed to the Illinois House Revenue and Finance Committee for deliberation. It was proposed by Representative Michael J. Zalewski and also called for tax officials to accept cryptocurrency and convert the payments to U.S. dollars within 24 hours.

Recently, it was reported that members of Arizona’s Senate passed its bill in a 16-13 vote last month. The measure is now being considered by the state House of Representatives. Georgia’s bill remains to be seen whether the legislation will attract the huge interest Arizona’s bill has earned.

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