The U.S. state of Illinois is currently weighing legislation which will allow residents to use cryptocurrencies to pay taxes.
House Bill 5335, or the Revenue Cryptocurrency Bill, was introduced by Rep. Michael J. Zalewski and states that “the Department shall accept payment for any tax imposed by the State and administered by the Department by cryptocurrency.”
In practice, the taxpayer would send cryptocurrency as a tax payment which the state department would then convert back into US dollars at ‘the prevailing rate within 24 hours’. The department then credits the taxpayer’s account with whatever value that may be.