Overstock To Use Bitcoin In Paying Taxes
United States retailer Overstock.com has decided to pay part of its business taxes in the state of Ohio through the use of the world’s leading cryptocurrency called Bitcoin. The decision to do so was made official via an announcement posted on the firm’s website.
A Crypto Taxpayer Platform
Overstock is said to cover all commercial activity taxes (CAT) with the aforementioned digital currency starting February. This will be made possible using the recently launched cryptocurrency taxpayer platform, which is called OhioCrypto.com.
The company’s CEO and founder Patrick Byrne, who is a longtime crypto enthusiast, claimed in the announcement that governmental adoption of digital assets and other emerging technologies, accompanied by friendly legislation, is “the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy.”
As previously reported before, Ohio became the first U.S. state to accept BTC as a payment method for taxes in November. It should be noted, however, that the service is only made available for businesses. Interestingly, there are reports suggesting that plans of extending the option to individual filers in the future have been put up.
Accepting Other Cryptocurrencies
Ohio State Treasurer Josh Mandel said in an interview that the state could go beyond the idea of accepting Bitcoin. That is because there is a possibility of accepting other cryptocurrencies, though he cannot tell exactly when and how it is going to work.
In another inteview, Mandel reiterated this stance while confirming that the state plans to introduce crypto payments for all taxpayers by 2020. Back in 2014, Overstock became the first major company to accept BTC following a partnership with crypto exchange Coinbase.
Most recently, Byrne revealed that he would sell the retail arm of the company in order to focus on blockchain by February 2019. Before this narrative, the entrepreneur had already sold 10 percent of his shares that totalled more than $20 million to invest them in the firm’s blockchain-focused subsidiary called Medici Ventures.
The Benefit Of Bitcoin Payments
Mandel added that many taxpayers opt to use credit cards, which obliges them to pay a 2.5% service fee, but that Bitcoin payments will incur a fee of only 1%—and none at all for early filers like Overstock.
For now, the Ohio Bitcoin initiative covers only 23 types of business taxes the state collects, including those for tobacco and fuel. And in the case of Overstock, it is electing to pay only the Commercial Activity Tax (CAT), which applies to businesses with over $150,000 in receipts.