Bitcoin Now An Option For American Taxpayers: SnapCard Adopts Pay-the-IRS Service

snapCard, the online Bitcoin service provider that allows users to make transactions in the digital currency, has just announced the

snapCard, the online Bitcoin service provider that allows users to make transactions in the digital currency, has just announced the launch of a new initiative just in time for the U.S. tax season, tabbed the pay-the-IRS service, according to a company statement.

snapCard users are eligible to purchase items and make financial transactions through all major retailers, even if the website platform does not accept Bitcoin as a means of payment. With the new-year in full swing however, the company has instituted a new pay-the-IRS service as a means of payment for all U.S. tax forms.

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Pay-the-IRS Service Competitive With Traditional Means

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According to Ioannis Giannaros, a snapCard founder in a recent statement to CoinDesk, “Tax services are truly relevant now. Users will be able to pay their taxes in Bitcoin and the company will process a USD transaction through a payment processer. Essentially, you fill out a form and you say how much you want to pay, then we invoice you.”

The practice of paying the IRS without cash or money wired from a checking or retail banking account is hardly unusual. “There are payment processers that have partnered with the government already. What we’re essentially doing is functioning as a layer on top that accepts Bitcoin,” Giannaros added.

The cost for the pay-the-IRS service is a flat fee of $10.00 coupled with a 1.87% service fee, which is lower than the standard 2% fee normally associated with snapCard transactions. Furthermore, the new service maintains its competitiveness with existing payment systems – according to the IRS payment schedule for 2014, conventional credit card users are charged an average of 2.35% with a flat fee of $2.79.

The extension into IRS services is the latest ambition from snapCard, a relative upstart that typically operates in the e-commerce realm. Many retailers have thus far been reluctant to adopt Bitcoin payment systems, however there are a few exceptions that are in experimental stages. Given these deterrents, third party payment systems such as SnapCard remain as essential mediums for Bitcoin users.

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