Blockchain-based payments provider BitPay partnered with Refundo to facilitate federal and state tax refunds in Bitcoin for the United States’ taxpayers.
Refundo, a tax-related financial products company, released a new product called CoinRT for tax payouts in Bitcoin. It will allow its users to get all or a portion of tax refunds in digital currencies and will use BitPay’s Payouts for efficiency and low transaction fees.
Mentioning this new crypto-based product, Rolf Haag, head of business solutions at BitPay, said: “Refundo’s integration joins existing BitPay Payouts used in global marketplace, affiliate programs, and payroll, highlighting the high-speed and low cost of Payouts in Bitcoin. Whether they’re going around the corner or around the globe.”
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Tuesday’s announcement detailed that customers have to pass a proper know-your-customer (KYC) process and will have to provide a Bitcoin wallet address while opening a new account. Customers then need to provide their unique routing accounting number on their tax return, and BitPay will automatically process any tax refunds received from the Internal Revenue Services (IRS) or state tax authorities.
“Refundo offers several options to help taxpayers receive their tax refunds safer, faster and more conveniently,” Roger Chinchilla, CEO of the company, added. “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.”
Crypto support in taxation
Many companies in the United States are adding tax support, mostly for declaring crypto incomes while filing returns. Coinbase was among the first to integrate TurboTax support on both of its retail and professional platforms to allow its customers to claim crypto trades on their taxes.
Ernst & Young also launched an accounting and taxation tool to facilitate accounting and tax calculations for cryptocurrency transactions for both retail and institutional investors.