If your state demands your taxes be paid in FIAT, no matter what you wan't, you'll be paying in FIAT (or fined, or in jail, or depending on the circunstances maybe dead).
When the taxman comes knocking on their door, do you think this person will escape by saying "sorry, I don't have fiat available to pay for the taxes, come back next year!"? No, the taxman will respond by either seizing their assets or forcing the person to liquidate into fiat.
What makes Bitcoin (or crypto) different in that regard?
bitcoin acts more like a commodity than fiat. Bitcoin is backed by the laws of mathematics, rather than laws of nature (which is the case for gold).
Your claim that bitcoin is not fiat because it's backed by the laws of mathematics makes as much sense as claiming that the dollar is not fiat because it's backed by the printing press. This is not what 'backed' means in the context of money.