Yes the payment will be a taxable event. I bought sats when they announced the service a week or so ago, then used their billpay service yesterday to pay the bill. The billpay service uses the sats for payment. They are selling the sats a part of the transaction. This was my first billpay to see how it works what the reporting will look like.

Yeah I wanted to see how quickly the payment processed and want to see how they handle the cost basis reporting at yearend . But it was cool and will probably start using it to pay cc monthly