Crypto Crash Halts Plans by Statehouses to Accept Bitcoin Tax Payments

The dollars from you are transferred directly to them in some cases. The fee goes to the processor. The difference is that the bill is denominated in dollars and satisfied in dollars. You have no option but to make sure that the state gets dollars at the end of the day. The state has no interest in holding crypto, never holds or touches crypto and won’t accept it if you go to the tax payers office. If I show up to the tax office with a bag of dollars they are legally obligated to accept it at face value. If I show up with crypto they tell me to go to a third party who will give me a non negotiable rate to turn that crypto into dollars. How are these two situations at all the same?

With dollars you aren’t selling an asset to a third party who then gives dollars to the government on your behalf. You also don’t create an additional reporting burden in regards to the IRS.

I work for a firm that specializes in payments from constituents to governments. I know this space pretty well.