BitPay, an Atlanta, Georgia-based Bitcoin payment service provider, has entered a new partnership with Refundo, a low-cost tax-related bank product provider. The partnership will enable people to get a segment of their tax refund back in Bitcoin (BTC). With this collaboration, Refundo’s new product, named CoinRT, allows taxpayers to receive all or a section of the federal and state tax refunds in BTC through BitPay’s Payouts, and it ensures low transaction fees, pace, and serving the underbanked.
For using the platform, taxpayers need to generate an account, provide a Bitcoin wallet address, and get a unique routing and account number to input on their tax return. Then they have to go ahead of a Know Your Customer (KYC) procedure, and once the Internal Revenue Service (IRS) or state deposit the refund, BitPay processes the payment and transfers it to the taxpayer’s crypto wallet. Today, several leading financial industries have been steadily embracing the tax issue when dealing with cryptocurrencies. In this regard, Big Four auditing and professional services firm Ernst & Young introduced a tool last month for accounting and preparing taxes on Cryptocurrency holdings. The product can purportedly get information about crypto transactions from virtually all major exchanges, consolidate data from various sources, and automatically generate reports, including cryptocurrency-related IRS tax returns.
In February this year, United States tax preparation software TurboTax Online established a partnership with CoinsTax, LLC to add Cryptocurrency tax calculation to its services. With this service, users will have access to import trading data directly from major exchanges. Founded in the year 2011, BitPay offers Bitcoin and Bitcoin Cash payment processing services for merchants.