Posted by Fletcher Accounting and Tax Service Inc.

Taxpayers to pay using Cryptocurrency

Taxpayers to pay using Cryptocurrency

The Essential role of Tax Preparers

Tax paying has always been a matter of considerable controversy, from the great businesspersons to the average men of the state. Every now and then we come across the news related to tax evasion and strict government action that leads us nowhere. Tax elusion brings about some people into the limelight for a while. To avoid such matters, it is essential for all those who ought to pay taxes to hire the tax preparers. Taxpayers can keep a proper account of how much taxes they have to pay. They should make sure that no issue exists against the income and assets of the taxpayers. 

A taxpayer himself should indulge in the activity of bookkeeping. Being dependent solely on the tax preparer for keeping all the record and determining how much tax they have to pay is not wise. Keeping your eyes wide open is extremely important in the world today. As we are heading towards great development, expansion, and progress, many new ways is opening up for us. We have unlimited options and uncountable solutions to our problems. As one of the answers, tax preparers may suggest the taxpayers pay using cryptocurrency. It is being predicted to become one of the most popular trends in the years that follow. 

The Current Wave of Cryptocurrency and Tax paying

Cryptocurrency has recently grasped the attention of many people around the globe. From young lads to old pals one and all want to invest some way, through bitcoin or any other form of it. Cryptocurrency has is always viewed as a mean of earning great profits on small investments. But the newest trends suggest something else! There is good news for the taxpayers. One of the idea put forth says that now taxpayers would be able to pay taxes through cryptocurrency. The announcement came up as quite a shock to one and all that a bill was passed in the Senate of the state of Arizona. 

The bill aims at giving the law that will help taxpayers to pay using cryptocurrency by 2020. This bill still requires the approval from the House of Representatives. However, the Senate and the finance committee of the Senate passed it with the absolute majority. Likewise, other states are working on similar bills and may stand successful. However, the government is against cryptocurrency and claims it to be an intangible and useless thing. Nevertheless, it's also being suggested to make cryptocurrency more common and bring it into use. This may assure that cryptocurrency would not lead to tax evasion or other evil purposes. 

Cryptocurrency and Tax evasion

Many merchants in the world today are using cryptocurrency for tax evasion. Presently cryptocurrency is decentralized. It requires no bank accounts for the transactions to be made thus saving 4 to 5 percent of the total revenue. As it is decentralized it has no records therefore there's no proof of any kind of taxes for the merchants. As a matter of fact the great businessmen are also using cryptocurrency for the International trade. Using this medium keeps them all safe and secure from the income tax. This negative aspect is keeping all the legal authorities away from cryptocurrency. 

How can Cryptocurrency be a mean of Taxpaying in future?

We can envision taxpayers to pay using cryptocurrency shortly. In the world today everything has been digitalized. However, the currency notes are way too outdated. These currency notes may soon be entirely replaced with the digital wallets and cryptocurrency as well. Whatever is done online and with the help of digital means always has better records and can be tracked up more easily. Thereupon these means may guarantee better and more efficient ways of paying taxes. 

Cryptocurrency; notably bitcoin, has won great popularity over the years. People have earned vast amounts of money with bitcoin. Great contemplation and debates are going on to put heavy taxes on the income generated from cryptocurrency. To sum up, even if there would be an income tax on cryptocurrency, why not use cryptocurrency as a mean of paying taxes. All in all, we can say it would be wise for taxpayers to pay using cryptocurrency.

Fletcher Accounting and Tax Service Inc.
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