Crypto payment services company BitPay is partnering up with tax-based financial services firm Refundo to allow taxpayers to chance to get a portion of their tax refunds in bitcoin (BTC) A recent press release announced the collaboration between the two companies.
Refundo has a new product in the works dubbed the CoinRT. It lets people receive all or a part of their state and federal tax refunds in bitcoins using BitPay’s Payouts. Refundo’s new product is said to be fast, offers low transaction fees and more importantly, it will serve the underbanked.
Taxpayers who want to use the platform can simply open an account, provide Refundo with a BTC wallet address, and they’ll receive a distinct routing and account number they’ll include on their tax return form. Clients are also required to pass Refundo’s KnowYour Customer procedure.
Once the state or the Internal Revenue Service (IRS) deposits the refund, BitPay will process the payment and transfer the digital currency to the customer’s virtual wallet.
The new feature further emphasizes how the financial industry is steadily working to consider tax issues when dealing with crypto technology. The previous month saw Ernst & Young, one of the biggest auditing firms in the country, release a tool that can be utilized for accounting and computing taxes for crypto holdings. It can allegedly get data on cryptocurrency transactions from basically every major exchanges. The tool ca also consolidate said data and automatically create reports, including crypto-related IRS returns.
Earlier this year, American tax software firm TurboTax Online collaborated with CoinsTax, LLC to include crypto tax calculation in its offerings. The service lets users import trading information directly from major digital exchanges. Once the data has been calculated, income and capital gains reports can be uploaded or downloaded straight into Form 1040 Schedule D.