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Rep. Warren Davidson Introduces Bill to Let Americans Pay Federal Taxes in Bitcoin

Backers say the plan would codify a strategic reserve by converting Bitcoin tax remittances into national holdings.

Overview

  • The Bitcoin for America Act would allow federal tax payments in Bitcoin without triggering capital gains liability.
  • All Bitcoin received from tax payments would be directed into a U.S. Strategic Bitcoin Reserve, formalizing an existing executive order.
  • Under current IRS rules, using cryptocurrency for payments is a taxable event, and the bill seeks to remove that barrier for government remittances.
  • The Bitcoin Policy Institute endorsed the measure and released a model projecting potential accumulation if taxpayers opt in, including about 2.6 million BTC by 2030 at 1% uptake.
  • Introduced on Nov. 20, the proposal now awaits congressional consideration and would require Treasury and IRS procedures to implement if enacted.