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.
Pay-the-IRS Service Competitive With Traditional Means
Understanding the Gaps in Forex TradingGo to article >>
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.