By David Deputy, Chairman, ABC
My how times are a changing. Businesses can now pay their Ohio tax liabilities in Bitcoin; Sales tax, wage tax, withholding taxes, you name it. What might sound like a headline from the Onion given the challenges in paying taxes on cryptocurrencies is rather a real quote from today’s Wall Street Journal on paying taxes with a cryptocurrency. As is clear to any business owner, the ability to use a currency to pay one’s taxes is critical to making a currency “real”. We may have just stepped over that line with the first cryptocurrency – Bitcoin.
To first demystify it, we turn to our Tax Working Group Chairperson and CryptoTaxAcademy.com CEO, Mario Costanz. “The mechanics are that the site OhioCrypto.com enables businesses to make bitcoin tax payments that are then converted to dollars which flow directly into the Ohio treasury. This announcement from a US State government is a significant milestone in the adoption of digital assets and cryptocurrencies in the US.”
With central banks considering issuing their own digital currencies per recent IMF discussions, we may be entering a world where there will be multiple competing currencies accepted in the US and beyond. These changes are driven by the rapid digitalization of the global economy. It’s only nature for such changes to take advantage of the most advanced technology available at the time, and tax collection is no different. This brings us to the Accounting Blockchain Coalition, a member led non profit organization of leading tax and accounting professionals.
The Accounting Blockchain Coalition’s members are emerged in the transformations happening in the worlds of tax and accounting. Our members received advanced analysis of key events such as this so they can be better prepared to serve their clients and management teams. As industry insiders we expect this to be just one of many such events over the course of the next few years as digital assets go mainstream. To be in the know and keep pace with this rapidly evolving landscape we come together into four working groups; Tax, Accounting and Auditing, Regulatory and Internal Controls. We invite tax and accounting professionals to consider corporate membership as staying up with the blockchain based digital economy doesn’t have to be so taxing anymore. For more information see : https://accountingblockchain.net/