On June 25, 2024, Congressman Matt Gaetz (R-FL) introduced H.R. 8822 (the "Bill"), which would add Section 6316A to the Code, allowing individuals to pay their federal income tax using Bitcoin. According to Gaetz, "enabling taxpayers to use Bitcoin for federal income tax payments . . . promote[s] innovation, increase[s] efficiency, and offer[s] more flexibility to American citizens," and is "a bold step toward a future where digital currencies play a vital role in our financial system, ensuring the U.S. remains at the forefront of technological advancement."
If enacted, the Bill would require the U.S. Secretary of the Treasury (the "Secretary") (currently Janet Yellen) to develop and implement a method to allow for Bitcoin payments and prescribe regulations that:
- specify when such payments are considered received,
- require the immediate conversion of such payments to their dollar equivalent at the conclusion of any transaction,
- identify types of non-tax matters related to such payments that are to be resolved by persons ultimately liable for payment and financial intermediaries, without the involvement of the Secretary, and
- ensure that tax matters related to such payments will be resolved by the Secretary, without the involvement of financial intermediaries.
The Bill would also authorize the Secretary to enter into contracts to obtain services related to receiving Bitcoin payments.
The new Section 6316A would apply to payments made one year after the enactment of the Bill.
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