Income tax payers in the U.S. now have the option to receive their federal and state refunds in bitcoin.
Blockchain payments processor Bitpay announced the news on Tuesday,
saying that the firm has
partnered with U.S.-based taxation services
provider Refundo for the service.
Refundo customers can choose to receive all or a portion of a tax
refund in bitcoin using its CoinRT product. Taxpayers will have to set
up an account to get a unique routing and account number to input on
their tax return, according to the announcement.
They will also have to provide necessary background information for
know-your-customer (KYC) rules, as well as a bitcoin wallet address.
Once the Internal Revenue Service (IRS) or state has deposited the
refund, BitPay will process the payment and send bitcoin to taxpayers’
wallets.
The service is touted as primarily focusing on serving the
underbanked community with faster payments and lower transaction fees.
Refundo CEO Roger Chinchilla commented:
“Adding bitcoin was a natural fit for our customers who
often do not have traditional checking accounts, pay high check cashing
fees and regularly send money internationally. CoinRT enables them to
get bitcoin quickly and easily for one flat fee.”
Refundo’s website says the CoinRT service costs $34.95 per payment,
while BitPay normally charges 1 percent for its service. CoinDesk has
reached out for clarification on the overall fee in this case and will
update this article if and when the information is made available.
Founded in 2011, Bitpay processed over
$1 billion worth of transactions last year. The firm has previously partnered with a
Florida county tax collector and
Ohio state to help them accept taxes in cryptocurrency.
Most recently, Bitpay also
partnered with a municipality in Canada to accept bitcoin for property tax payments in a one-year trial.