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US Income Tax Payers Can Now Get Refunds in Bitcoin
Income tax payers in the U.S. now have the option to receive their federal and state refunds in bitcoin through Bitpay and Refundo.
Par Yogita Khatri
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.
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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.”
The CoinRT service costs $34.95, regardless of the refund amount. No separate fee is paid by the user to BitPay, the firms told CoinDesk.
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.
Tax form and refund image via Shutterstock
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