The option is now available for U.S. income taxpayers to receive their federal and state refunds in bitcoin. Refunds available in Bitcoin for US income taxpayers.
The news was released by blockchain payments processor Bitpay in April. The firm said that for the service, it has partnered with U.S.-based taxation services provider Refundo.
Refundo’s product, CoinRT, is what will be used when customers choose to receive all or a portion of their tax refund in bitcoin. According to the announcement, accounts with a unique routing and account number will have to be set up by taxpayers, and input on their tax return.
In addition, they will have to provide necessary ID for know-your-customer (KYC) rules, as well as a bitcoin wallet address. BitPay will process the payment and send bitcoin to taxpayers’ wallets, once the Internal Revenue Service (IRS) or state has deposited the refund. Refunds available in Bitcoin for US income taxpayers.
The primary focus of the service is to provide an option to the underbanked community, with faster payments and lower transaction fees.
Roger Chinchilla, Refundo CEO, 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.”
There is a flat cost for the CoinRT service of $34.95, regardless of the refund amount. No separate or additional fee is required to be paid by the user to BitPay.
Bitpay also partnered in a one-year trial with a municipality in Canada to accept bitcoin for property tax payments.
Bitpay was founded in 2011 and has processed over $1 billion worth of transactions in the past year.