[telot]

Anyone know of the tax benefits/pitfalls of paying (and being paid) in bitcoin?

[logicchains]

It certainly makes tax evasion easier, if that counts. Not as easy as paying/being paid in cash, but far easier than other electronic means of payment (in the sense that it currently offers more anonymity).

[Gotperl]

It isn't legal in most US states. Almost all states have laws that dictate employees working within that state have to be paid in US currency

[baddox]

To cite one example, here's Texas:

http://www.statutes.legis.state.tx.us/Docs/LA/htm/LA.61.htm

[greenyoda]

And payroll taxes certainly need to be paid in US currency. The IRS and state tax departments don't accept Bitcoin.

[bduerst]

They do, but it's classified as a "barter".

If you have the option to get USD instead of BTC, then you're much, much better off getting paid the former.