Crypto Currency Now Accepted For All State Tax Payments
Starting September 1, 2022, the Colorado Department of Revenue (DOR) will now accept Cryptocurrency as an additional form of payment for all state taxpayers. This includes individual income tax, business income tax, sales and use tax, withholding tax, severance tax and excise fuel tax.
Cryptocurrency has been modified as an additional payment option for taxpayers who are ready to complete an online transaction to pay for their state taxes on Revenue Online. This option allows for cryptocurrency payment through the PayPal Cryptocurrencies Hub, where taxpayers will be able to select their desired cryptocurrency to use for the payment.
The Process, Service Fees and Restrictions:
A sufficient amount of cryptocurrency to cover the tax, obligation and fees is converted to dollars and remitted to DOR to complete the online transaction. Service fees include an additional $1.00 plus 1.83% of the payment amount. You must have the entire value of your invoice in a single cryptocurrency in your PayPal Cryptocurrencies Hub. Effective on the date initiated, USDs will transfer in 3-5 business days. +-
PayPal purchase fees or miner/gas fees may apply when transferring cryptocurrencies from an external wallet to your PayPal Cryptocurrencies Hub.
At this time, only PayPal Personal accounts can pay using cryptocurrency. PayPal Business accounts cannot pay using cryptocurrency. Transfers from external wallets to your PayPal wallet must be done via the PayPal mobile app.
Tax refunds will not be issued in crypto currencies.
How to Make a Payment using Cryptocurrency:
- Begin by accessing Revenue Online. You do not need to log in to make a payment.
- Locate the “Payment Options” box on the Revenue Online homepage.
- Click “Make a Payment.”
- Select “Cryptocurrency.”
- Read the information about the various service fees and processing timelines before selecting a payment option.
For more information, please review the attached FAQs.