US citizens will soon be able to receive their tax refunds in Bitcoin, thanks to a new collaboration between BitPay and Refundo.
Any current or future clients of Refundo, a leading provider of tax-related financial products, will be able to opt to receive all, or some of their federal and state tax refunds in BTC, via a new Refundo CoinRT product.
Rolf Haag, the Head of Business Solutions at BitPay said in a press release: “Refundo can now offer their customers a Bitcoin Payout for their tax refunds, meeting their customers’ demand for a more digital choice.”
He added that Refundo’s integration will join existing BitPay Payouts which is already used in the global marketplace and offers high-speed and low-cost payouts in Bitcoin.
Via Refundo, taxpayers will need to open an account and will then be assigned a unique routing and account number that they then need to note on their tax return. Clients will also need to provide all of the necessary KYC and due diligence information to satisfy regulatory requirements, as well as their Bitcoin wallet address. Once the Inland Revenue Service or state deposits the refund, BitPay will process the payment and the applicable amount of Bitcoin will be deposited into the individuals Bitcoin wallet.
CEO of Refundo, Roger Chinchilla explained that the need for the product is not just to serve crypto-enthusiasts but also to assist those that are “underbanked”, such as those in low-income communities that find it hard to access banking services.
“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.”
Bitcoin was chosen as the cryptocurrency of choice, not just because it is the world’s leading cryptocurrency, but because it provides transactional transparency through verification, recording, and storage on the blockchain.
Refundo were founded in 2011 and provide taxpayers with refund advances, refund transfers, payment processing and various other tax-related services. BitPay, also founded in 2011 are one of the world’s most experienced companies in Bitcoin and blockchain payments. Their platforms allow the sending and receiving of cross-border payments, as well as providing wallet services and a BitPay Prepaid Visa Card.
The financial services industry has been gradually embracing the world of cryptocurrency. Just last month Ernst & Young announced a new tool for preparing taxes on cryptocurrency holdings. The product can apparently get information from all exchanges and then consolidate the data to produce a report covering crypto-related IRS returns.