US Congressman Introduces Bill Allowing IRS to Receive Federal Taxes in Bitcoin

US Lawmaker Matt Gaetz Introduces Bill to Allow IRS to Accept Bitcoin for Federal Taxes

Congressman Matt Gaetz, a Republican from Florida, has put forward a new legislation that would compel the U.S. Secretary of the Treasury to establish a system enabling federal income taxes to be paid using Bitcoin (BTC).

In a statement, Gaetz emphasized that the proposed law aims to modernize the U.S. tax system. The lawmaker believes that enabling taxpayers to fulfill their obligations to the government through the primary cryptocurrency will drive innovation, enhance efficiency, and provide greater flexibility to American citizens.

According to the bill, “The Secretary shall develop and implement a method to allow for the payment with Bitcoin of any tax imposed on an individual under this title.”

Gaetz unveiled the bill following his attendance at the re-inauguration of El Salvador’s President Nayib Bukele, who famously made the Central American nation the first in the world to adopt Bitcoin as legal tender. Gaetz’s office noted that the congressman observed firsthand how Bitcoin has contributed to financial stability and job creation in El Salvador.

Earlier in the year, President Bukele announced that El Salvador would continue purchasing Bitcoin daily until it becomes unaffordable with fiat currencies. As per El Salvador’s Bitcoin Office, the country currently holds 5,793.76 BTC valued at over $353 million.

Gaetz’s initiative underscores a broader trend toward digital currencies playing a more significant role in financial systems, positioning the U.S. at the forefront of technological progress in the financial sector.