BitPay Helps People Get Their Tax Return Paid in Bitcoin
Refundo, a tax return fulfillment firm, has partnered with BitPay to deliver tax returns in Bitcoin. With their CoinRT product, users can receive all or part of their federal and state tax returns via Bitcoin, paid through Bitpay.
Tax Returns Become Capital Gains
The process is simple enough. In addition to filling out the standard tax return information, users must go through a KYC process. They are then issued a special routing and bank account number. Once the government processes their return, they receive Bitcoin to the address they’ve provided.
BitPay’s Head of Business Solutions, Rolf Haag, said:
“We are thrilled to power Refundo’s CoinRT product. Refundo can now offer their customers a Bitcoin Payout for their tax refunds, meeting their customers’ demand for a more digital choice. Refundo’s integration joins existing BitPay Payouts used in global marketplace, affiliate programs and payroll, highlighting the high-speed and low cost of Payouts in Bitcoin. Whether they’re going around the corner or around the globe.”
In theory, the payments would be faster. However, since the government is still paying by traditional banking methods, it adds a little time to the process.
Tax Liabilities Come With Owning Bitcoin
Another issue that people should consider is the tax liability incurred through purchasing Bitcoin. If the price of their BTC increases and they sell it, they’ve engaged in a tax event, and indeed this isn’t the type of tax event they’d want to forget about next year at tax time. However, if the coins lose value before the next tax filing deadline, they could claim it as a loss. The tax situation with cryptocurrencies is overwhelming to many, and those with any significant holdings should always consult a professional.
Refundo says that Bitcoin makes a lot of sense for its userbase. CEO Roger Chinchilla said:
“Adding Bitcoin was a natural fit for our customers who often do not have traditional checking accounts, pay high check cashing fees and regularly send money internationally. CoinRT enables them to get Bitcoin quickly and easily for one flat fee.”
These days, people have the option of receiving Bitcoin for many types of payments. If someone is contracting online, for example, they can use the Bitwage service to receive bank wires via Bitcoin. For its part, Bitpay processes both ways – if a merchant wants to accept Bitcoin but receive fiat, they can do that through Bitpay. People also have the option of receiving a little cryptocurrency every time they use their credit card, through apps like Lawnmower and Bundil.
Owning Bitcoin is an increasingly popular financial decision, with millions of US adults engaging in trading. Access to crypto opens doors that weren’t possible for many regular people before, such as lending and investing in businesses.
Featured image courtesy of Shutterstock.