Federal tax season just passed in the United States, but if you’re one to leave responsibility to the wayside and had to apply for an extension, that might just pay off.
It’ll give you the opportunity to become one of the inaugural users of a new joint-endeavor by crypto payment processor BitPay and tax services company Refundo. The new program called CoinRT gives Refundo users the opportunity to take their federal and state income tax refunds in bitcoin.
“We believe that as more and more people understand the benefits of Bitcoin, they’ll gravitate to it. With the option to set aside all or part of their refund in a seamless manner, it allows those on the sidelines to jump right in,” Refundo CEO Roger Chinchilla told Bitcoin Magazine.
Tax filers using Refundo’s system who opt into the program will include a routing and account number linked to BitPay’s Payouts. Once the refund hits this account, BitPay converts the cash to sats and sends it to whatever wallet address the user provided upon sign-up (this sign-up, as one would expect, includes KYC).
A press release shared with Bitcoin Magazine highlights that the move is in line with Refundo’s wider focus on lower income and poorly banked populations. For this purpose, bitcoin offers a low friction refund option for those who don’t have access to reliable banking, Refundo CEO Roger Chinchilla claims.
“We’re always looking at low-cost and convenient methods to disburse our clients' refunds. As bitcoin adoption steadily grows, Refundo believes we can serve as an innovative payout process for our clients. Refundo’s focus has been on serving the underbanked, which is at the core of bitcoin’s rise, so it’s a natural fit. More than that, it gives taxpayers an incentive to save. Instead of splurging when your refund arrives (this is typically the case in low-income communities), CoinRT can act as a saving mechanism and ensure taxpayers are more fiscally responsible,” he told Bitcoin Magazine.
Head of Business Solutions at BitPay Rolf Haag told us that the partnership answers “customer demand in multiple verticals for Bitcoin Payouts. It also signals that the “global marketplace” for payouts in bitcoin is growing.
“Recipients want choice, especially for high cost alternatives like bank wire receipts or pre-loaded debit cards. Recipients are tired of paying to receive, and senders want to make their recipients happier without incurring additional costs,” he concluded.
At any rate, the partnership adds bulk to a growing trend of bitcoin’s burgeoning role in taxation. Canadian town Innisfil made history early this year as the first North American municipality to permit its citizens to pay local taxes in bitcoin. For Canada’s southern neighbor, Ohio opened up a bitcoin payment option to its corporations at the tail end 2018, and, in May of the same year, Seminole County Florida enabled the option for things like property tax.
Colin is an associate editor and staff writer for Bitcoin Magazine. He's proud to call Nashville his home, where he spends his days shouting at peddle taverns and trying to find affordable parking downtown. If it wasn't already obvious, he holds bitcoin.