Income tax payers in the U.S. now have the option to receive their federal and state refunds in bitcoin.
Blockchain payments processor Bitpay announced the news on Tuesday, saying that the firm has partnered with U.S.-based taxation services provider Refundo for the service.
Refundo customers can choose to receive all or a portion of a tax refund in bitcoin using its CoinRT product. Taxpayers will have to set up an account to get a unique routing and account number to input on their tax return, according to the announcement.
They will also have to provide necessary background information for know-your-customer (KYC) rules, as well as a bitcoin wallet address. Once the Internal Revenue Service (IRS) or state has deposited the refund, BitPay will process the payment and send bitcoin to taxpayers’ wallets.
The service is touted as primarily focusing on serving the underbanked community with faster payments and lower transaction fees.
Refundo CEO Roger Chinchilla commented:
The CoinRT service costs $34.95, regardless of the refund amount. No separate fee is paid by the user to BitPay, the firms told CoinDesk.
Most recently, Bitpay also partnered with a municipality in Canada to accept bitcoin for property tax payments in a one-year trial.
Tax form and refund image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.