The Coinbase cryptocurrency exchange says users can send funds to their accounts in fiat currency or automatically change them to cryptocurrency without paying transaction fees. Under an arrangement with the Coinbase Cryptocurrency Exchange, the tax filing platform TurboTax enables U.S. filers to receive refunds directly in the form of cryptocurrency.

In a Feb. 3 blog post, Coinbase announced that users who file tax returns using TurboTax will have the opportunity to receive any returns in cryptocurrencies such as bitcoin and other cryptocurrencies backed by the platform. The exchange said users can send funds to their Coinbase accounts in fiat currency or automatically change them to cryptocurrencies without paying a transaction fee.

A report in The New York Times said Coinbase's proposal is designed for state and federal income taxes. Previously, the exchange has partnered with tax calculation platform CoinTracker to fill out forms for users to report capital gains and losses on their returns.

The deadline for U.S. residents to file their taxes is April 18, and most platforms are increasing their offerings to navigate basic forms to avoid any possible audits. Cryptocurrency tax compliance firm TaxBit said in January that it was launching a network of U.S. cryptocurrency companies designed to provide tax reporting data to users.

In current U.S. law, the exchange, purchase or sale of cryptocurrency qualifies as a taxable event and may be subject to a 20% capital gains tax. Holding assets for a full year or more specifically tax-free.