Is Ohio’s Bitcoin Tax Website Defunct?

Oct 14, 2019, the state’s Bitcoin-tax-payment platform, has left the building — at least temporarily. The site, which launched last year, allowed businesses to pay certain taxes using the cryptocurrency. But Ohio Treasurer Robert Sprague now has doubts about its legality.

Ohio Cryptocurrency Tax Payment Website Shuttered for Now

Sprague announced his decision at a State Board of Deposit meeting last week. The confusion involves BitPay — a crypto-to-fiat conversation service — and Ohio’s payment provider regulations. Since assuming office in January, Sprague has been “reviewing the creation and operation” of to assess if it’s a “financial transaction device.”

Why does the definition matter? Under Ohio law, for government projects, officials must use a “competitive selection process” when choosing partners for “financial transaction devices.”

Sprague wants the state’s attorney general, Dave Yost, to issue a formal opinion on the question. If Yost finds that administrators didn’t follow proper procedures, it’s back to square one.

Sprague explained:

“It is vital that Ohio explores innovative, new technologies and processes that continue to drive Ohio into the future. However, we must make sure any new processes that are implemented, such as, are established in accordance with Ohio law.”

Not many businesses should be affected by the temporary program suspension, however, because according to Sprague, fewer than ten companies used the site.

Connect with a Cryptocurrency Tax Lawyer

The Gordon Law Group maintains a leading, nationwide cryptocurrency tax law practice. We offer a host of federal and state tax compliance services and help clients build ideal tax positions for maximum profit. Our crypto lawyers work with small businesses, large corporations, and individual investors.

Give us a call. We have the cryptocurrency tax solutions and experience you need to save money and avoid compliance conflicts.

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