- A partnership between Bitpay and Refundo has given way for U.S. taxpayers to receive their tax refunds in bitcoin
- Refundo is focused on achieving a secure, fast and affordable Bitcoin Payout transaction
- Bitcoin is ideal on the Refundo platform thanks to its transactional transparency and high market cap
As from May 1, 2019, taxpayers in the U.S. can now choose to receive any amount of their federal and state tax refunds in bitcoin following a successful partnership between largest global blockchain payment provider, Bitpay and tax innovator, Refundo. The partnership will exclusively benefit Refundo taxpayers who can receive all or a portion of the federal and state tax refunds in Bitcoin using Refundo’s CoinRT product.
Bitpay announced that they were excited to power Refundo’s CoinRT product which will offer their customers a bitcoin payout in tax refunds. The partnership is expected to improve a transparent and seamless experience during tax season. It will also cater to the financial needs of the underbanked customer by allowing them to choose a payout process that they prefer. Refundo is focused on ensuring that the Bitcoin Payout transaction is fast, secure and with low transaction fees. More so, Refundo will still consider the needs of low-income earners and serve them in the best way possible.
How will the transaction work?
Taxpayers will be required to create an account with Refundo then will be assigned a unique routing and account number to input on their tax return. They will also be required to submit all necessary background detail for Know-Your-Customer Regulations including Bitcoin wallet address. Once the IRS or state deposits the tax refunds, Bitpay processes the payment, and the cryptocurrency is deposited into the taxpayers’ Bitcoin wallet. Transaction fee will be 1% of the total Bitcoin Payout.
Tax Refunds made Easier
The fact that bitcoin facilitates (both domestic and cross-border mass payouts) are more efficient, more accessible and quicker, makes it ideal for Refundo. Additionally, bitcoin provides transactional transparency since every transaction is verified, recorded and stored on the blockchain. This suits Refundo whose target market is mostly underbanked population who value quick and transparent transaction. Refundo offers other services such as refund advances which can also be enhanced by bitcoin pay-outs.
The partnership between Bitpay and Refundo to offer income tax refunds in bitcoin comes after several other similar partnerships. Earnst & Young and TurboTax also teamed up to prepare tax claims on clients’ cryptocurrency holdings. Refundo has also partnered with Stripe for credit acceptance and LendUp to offer their clients short term loans while they await their income tax refunds.