Embodiments of the invention described in this specification relate generally to sales and property tax payment and collection systems, and more particularly, to an instant tax collection digital currency system that is configured for instant tax collection and which eliminates back taxes due and future property taxes and/or fees by enabling digital currency automated payments to occur.
Current sales tax collections mechanisms (by each State) typically involve arduous and manual cash money type transactions. A common result is sales tax not being paid timely, resulting in back taxes. This leaves States in the precarious position of having to go after and collect back taxes. Furthermore, property taxes are collected by States typically on payor's own initiative. Say a property owner does not pay property taxes in a timely fashion. Now the State needs to treat the delinquent payments as back taxes and make efforts to collect the original property taxes and additional penalty fees. While there are many tax payers who voluntarily pay their taxes timely, sometimes even the willing tax payers forget to pay on time for a lot of reasons, such as not having a checkbook handy and just forgetting, not making a trip to post the payment, thinking some payment was made when it was not, etc.
Therefore, what is needed is an alternative manner of collecting tax payments and making tax payments by property and business owners, such that payments can be automated and back tax collections can be eliminated.
An instant tax collection digital currency system is disclosed which is configured to provide an instant tax and/or fee collection mechanism integrated with a digital currency as legal tender for payment of taxes and/or fees. In some embodiments, a process for creating and configuring a digital currency system is performed to initiate an instant tax collection digital currency system for deployment by a jurisdictional tax collecting entity to instantly collect taxes and/or fees and distribute tax and fee revenues for a variety of community needs within the jurisdiction. Upon creation, the instant tax collection digital currency system can be deployed by the jurisdictional tax collecting entity (e.g., a State government tax collection agency or entity) to collect and eliminate back taxes due, future property taxes and/or collect fees by enabling automated digital currency payments to occur. In some embodiments, the instant tax collection digital currency system is configured to perform instant and automatic sales tax, income tax, and property tax collections. In some embodiments, the instant tax collection digital currency system is configured to perform quarterly payment and instant/automatic tax and/or fee collection. In this way, the instant tax collection digital currency system eliminates back taxes due and future property taxes, thereby helping business growth and providing an investment opportunity.
The preceding Summary is intended to serve as a brief introduction to some embodiments of the invention. It is not meant to be an introduction or overview of all inventive subject matter disclosed in this specification. The Detailed Description that follows and the Drawings that are referred to in the Detailed Description will further describe the embodiments described in the Summary as well as other embodiments. Accordingly, to understand all the embodiments described by this document, a full review of the Summary, Detailed Description, and Drawings is needed. Moreover, the claimed subject matters are not to be limited by the illustrative details in the Summary, Detailed Description, and Drawings, but rather are to be defined by the appended claims, because the claimed subject matter can be embodied in other specific forms without departing from the spirit of the subject matter.
Having described the invention in general terms, reference is now made to the accompanying drawings, which are not necessarily drawn to scale, and wherein:
In the following detailed description of the invention, numerous details, examples, and embodiments of the invention are described. However, it will be clear and apparent to one skilled in the art that the invention is not limited to the embodiments set forth and that the invention can be adapted for any of several applications.
In this specification, the term “digital currency” refers to a non-fiat currency that may be used in connection with a blockchain with cryptographically encoded digital currency transactions stored as block of the blockchain or may be used in connection with another type of ledger system absent a blockchain implementation. Also, the term “digital currency” is variously referred to as “crypto currency” in this specification.
The term “digital currency token” refers to a single base monetary unit of value for the digital currency. Also, the term “digital currency token” is variously referred to as “token”, “digital token”, “crypto token”, and/or “crypto coin” in this specification.
An instant tax collection digital currency system of some embodiments is configured to provide an instant tax and/or fee collection mechanism integrated with a digital currency as legal tender for payment of taxes and/or fees. In some embodiments, a process for creating and configuring a digital currency system is performed to initiate an instant tax collection digital currency system for deployment by a jurisdictional tax collecting entity to instantly collect taxes and/or fees and distribute tax and fee revenues for a variety of community needs within the jurisdiction. Upon creation, the instant tax collection digital currency system can be deployed by the jurisdictional tax collecting entity (e.g., a State government tax collection agency or entity) to collect and eliminate back taxes due, future property taxes and/or collect fees by enabling automated digital currency payments to occur. In some embodiments, the instant tax collection digital currency system is configured to perform instant and automatic sales tax, income tax, and property tax collections. In some embodiments, the instant tax collection digital currency system is configured to perform quarterly collection and instant/automatic tax and/or fee collection. In this way, the instant tax collection digital currency system eliminates back taxes due and future property taxes, thereby helping business growth and providing an investment opportunity in digital currency.
As stated above, current sales tax collections mechanisms (by each State) typically involve arduous and manual cash money type transactions. A common result is sales tax not being paid timely, resulting in back taxes. This leaves States in the precarious position of having to go after and collect back taxes. Furthermore, property taxes are collected by States typically on payor's own initiative. Say a property owner does not pay property taxes in a timely fashion. Now the State needs to treat the delinquent payments as back taxes and make efforts to collect the original property taxes and additional penalty fees. While there are many tax payers who voluntarily pay their taxes timely, sometimes even the willing tax payers forget to pay on time for a lot of reasons, such as not having a checkbook handy and just forgetting, not making a trip to post the payment, thinking some payment was made when it was not, etc. Embodiments of the instant tax collection digital currency system described in this specification solve such problems by incentivizing and simplifying (by automation) tax payment systems with a digital currency (or “crypto”) token that works as legal tender in connection with the digital currency system of the present disclosure.
Embodiments of the instant tax collection digital currency system described in this specification differ from and improve upon currently existing options. In particular, some embodiments differ by being able to perform instant tax collection for sales tax, quarterly tax collection automated for income taxes and social security taxes, and other automated collection of taxes and/or fees.
The instant tax collection digital currency system of the present disclosure may be comprised of the following elements. This list of possible constituent elements is intended to be exemplary only and it is not intended that this list be used to limit the instant tax collection digital currency system of the present application to just these elements. Persons having ordinary skill in the art relevant to the present disclosure may understand there to be equivalent elements that may be substituted within the present disclosure without changing the essential function or operation of the instant tax collection digital currency system.
1. Create crypto token that can be used with system and stored in digital wallets
2. Integrate the crypto token as legal tender and payment of taxes and/or fees
3. Deploy the system hardware and software-based processes
4. Integrate the system (including hardware, software, and other technology resources and systems) with tax and/or fees collection agency (or other jurisdictional authority) systems
The various elements of the instant tax collection digital currency system of the present disclosure may be related in the following exemplary fashion. It is not intended to limit the scope or nature of the relationships between the various elements and the following examples are presented as illustrative examples only. Digital currency in the form of “crypto” tokens with tax and/or fees built into transfer, stored in digital wallets of owners. The various types of wallets would need to support include, without limitation, exchange, business, retail, individual, non-profit organization, state, municipal, and federal, among others.
The instant tax collection digital currency system of the present disclosure generally works by a process of instant automatic tax and/or fee deduction in transfers between wallets. For instance, the system can be configured to require 3% State tax sent automatically sent to state wallet, 5% Municipal tax sent automatically to municipality based on wallet zip code, 1% Property tax fee collected instantly sent to state wallet, 1% Proportionate holder split fee distributed instantly to individual, business and exchange wallets. Percentages and quantity may vary. In this way, it is possible to eliminate back taxes due and residential property taxes. The fees and taxes collected can then be used to alleviate future residential property taxes until eliminated, provide low to no income permanent housing solutions, provide land for community gardening solutions, enhance public schools, community centers and land, and/or enhance wildlife refuge and land recovery.
To make the instant tax collection digital currency system of the present disclosure, a digital currency platform would be created, integrated, and deployed as a central component, with crypto tokens, wallets, exchanges, possible smart contracts implemented with alternate blockchain networks, etc., and may also be integrated with existing tax and/or fee collections software systems of jurisdictional agencies or entities, whether State, Federal, Municipal, and/or other (hereinafter also referred to as the jurisdiction's “tax and/or fees collections entity”).
By way of example,
After creating the crypto token capable of being used with the instant tax collection digital currency system and being stored in digital wallets of users, the process 10 moves to the next step of integrating the crypto token as legal tender and for payment of taxes and/or fees. In some embodiments, a fiat currency exchange is required to integrate the crypto token as legal tender/payment of taxes and/or fees. In some embodiments, the crypto token is integrated as legal tender/payment of taxes and/or fees without a fiat currency exchange or with only an optional fiat currency exchange
Next, the process deploys the hardware and software-implemented processes for the instant tax collection digital currency system. For example, an information technology unit of a jurisdiction by provision and deploy computer servers, networking and communication hardware systems, database management servers and database software systems that are installed and run on storage devices in secure, local configurations and/or in cloud-based private storage locations for the jurisdiction. A variety of new and previously existing computing, networking, storage, and communication hardware resources not mentioned above may also be provisioned and deployed, as needed by the jurisdiction to support the instant tax collection digital currency system.
Finally, the process 10 proceeds to a step for integrating the instant tax collection digital currency system (with its hardware and software resources) with existing tax and/or fee collection systems that are already deployed and have been utilized previously by the respective departments, units, and/or agencies of the respective jurisdiction in which the instant tax collection digital currency system is being created and deployed.
After creation and deployment of the instant tax collection digital currency system, with the crypto token integrated as legal tender for peer to peer transactions (e.g., between different persons or from person to business, or business to person, etc.) and/or for payment of taxes and/or fees, a model of the instant tax collection digital currency system is captured. An example of such as model for an instant tax collection digital currency system deployment is described next, by reference to
Specifically,
Specifically,
Turning to another view,
By way of example,
When the payment from WALLET 1 is made, three percent (3%) of the payment amount is automatically and instantaneously transferred to a state main payment digital wallet in connection with a 3% State sales tax. Payment is also collected on behalf of recipient in transfer. Then payment is automatically and instantly collected on behalf of the recipient to a municipal hot swap digital wallet in transfer. The municipal hot swap payment collected is five percent (5%) in this case, due to the 5% municipal sales tax in place. This is distributed to a particular municipality digital wallet based on the receiver zip code (that is, the zip code of the peer entity associated with WALLET 2). However, if the zip code is not in the State of original for the transaction, then the sender's zip code is used (that is, the zip code of the peer entity associated with WALLET 1). Furthermore, if the sender's zip code is not with the State of the original transaction (e.g., an individual with WALLET 1 visiting the State temporarily and making a digital online transaction to buy some commercial goods from a business with WALLET 2 from another State—meaning both peer entity for WALLET 1 and peer entity for WALLET 2 are out of state entities), then an equal distribution of the 5% municipal sales tax amount is automatically calculated for redistribution to all municipalities of the State based on population.
Also, when the payment from WALLET 1 to WALLET 2 is made, one percent (1%) property tax is levied where payment on behalf of the sender (WALLET 1) is collected in a State property tax fund hot swap digital wallet for redistribution in any of several manners. For example, redistribution may be intended to (A) eliminate all back due residential property taxes, (B) alleviate future residential property taxes until eliminated, (C) provide low-to-no income permanent housing solutions, (D) provide land for community gardening solutions, (E) enhance public schools, community centers, and land, and/or (F) enhance wildlife refuge and land recovery. Another one percent (1%) holder split fee is automatically and instantaneously distributed to all non-State wallets proportionately. Exchange restocking is included in this distribution to secure inventory available. Adding up the aforementioned automatic and instantaneous distributions of 3% State sales tax, 5% municipal sales tax, 1% property tax, and 1% holder split fee leaves a balance of 90% of the amount sent from WALLET 1 being received at WALLET 2 for payment of the good and/or services rendered.
By way of example,
By way of another example,
In the second row, half of the total payment amount (50%) is in fiat currency and the other half is made in Federal payroll digital currency tokens. The 50% paid in fiat currency is used to purchase liquidity pool tokens (“LP tokens”) for Federal payroll. The remaining 50% paid in Federal payroll digital currency tokens is received as digital currency tokens. This means that half can be in fiat currency while the other half in Federal payroll digital currency tokens are uploaded to the Federal payroll tax system exchange and LP tokens are sent to the Federal digital wallet paid on behalf of the receiving wallet from the sending wallet.
In the third row, 100% are paid in as LP tokens, which are transferred to the Federal payroll tax payment wallet on behalf of the original receiving individual from the sending business. This is collected in a first-in-first-out (FIFO) basis and can be used as an investment tool to help stimulate the economy.
While many of the examples described above, by reference to
To use the instant tax collection digital currency system of the present disclosure, a person can simply pay for products, services, or taxes via digital wallet and crypto tokens, which are automatically designed to distribute the appropriate proportion of taxes to the current collecting agency, whether State, Federal, Municipal, and/or other. Since transactions are completed at the behest of the owner of the token, the automated collection of tax and/or fees simplifies the requirements for all parties involved in the transaction.
Many of the above-described features and applications are implemented as software processes that are specified as a set of instructions recorded on a computer readable storage medium (also referred to as computer-readable storage media, machine-readable media, machine-readable storage media, or non-transitory computer readable media). When these instructions are executed by one or more processing unit(s) (e.g., one or more processors, cores of processors, or other processing units), they cause the processing unit(s) to perform the actions indicated in the instructions. Examples of computer readable media include, but are not limited to, CD-ROMs, flash drives, RAM chips, hard drives, EPROMs, etc. The computer readable media does not include carrier waves and electronic signals passing wirelessly or over wired connections.
In this specification, the terms “software”, “application”, “program”, etc. (referred to below as “software”) are meant to include firmware residing in read-only memory or applications stored in magnetic storage, which can be read into memory for processing by a processor of electronic system hardware or computer system hardware (referred to as “electronic system”), such as the processor of a State or Federal tax server system (also referred to as a “server”) or computing device (referred to as a “traditional computer”, or simply as a “computer”). Also, in some embodiments, multiple software inventions can be implemented as sub-parts of a larger program while remaining distinct software inventions. In some embodiments, multiple software inventions can also be implemented as separate programs. Finally, any combination of separate programs that together implement a software invention described here is within the scope of the invention. In some embodiments, the software programs, when installed to operate on one or more electronic systems, define one or more specific machine implementations that execute and perform the operations of the software programs.
The above-described embodiments of the invention are presented for purposes of illustration and not of limitation. While these embodiments of the invention have been described with reference to numerous specific details, one of ordinary skill in the art will recognize that the invention can be embodied in other specific forms without departing from the spirit of the invention. Thus, one of ordinary skill in the art would understand that the invention is not to be limited by the foregoing illustrative details, but rather is to be defined by the appended claims.
This application claims benefit to U.S. Provisional Patent Application 63/314,246, entitled “AN INSTANT TAX AND FEE COLLECTION AND DISTRIBUTION DIGITAL CURRENCY SYSTEM CONFIGURED TO INSTANTLY COLLECT AND DISTRIBUTE TAXES AND/OR FEES IN TRANSFER PROVIDING AUTOMATIC MUNICIPAL, STATE, AND/OR FEDERAL TAXES, PAYROLL TAXES, AND/OR FEES INSTANT PAYMENT ELIMINATING BACK DUE TAXES AND FUTURE PROPERTY TAXES,” filed Feb. 25, 2022. The U.S. Provisional Patent Application 63/314,246 is incorporated herein by reference.
Number | Date | Country | |
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63314246 | Feb 2022 | US |