Column Tax, the personal income tax software company, has landed $5.1m in seed funding, led by Bain Capital Ventures.
Also participating in the round was South Park Commons, Core Innovation Capital, and Operator Partners. Column Tax said it will use the funds to expand adoption of its Tax Refund Unlock and Tax Filing products.
Column Tax provides an API that enables mobile banking and fintech companies to offer tax products to their account holders.
The company’s first commercial product, Tax Refund Unlock, enables its US customers to get advance access to their tax refunds in monthly payments, as well as file their taxes in a few clicks.
In partnership with Klover, the free financial services platform, users can opt in to immediately unlock access to their future refunds through the Klover app. By optimising tax withholdings, Klover users will receive more of their earnings in each paycheck, this reduces the need for loans or credit cards, Column Tax said.
Column Tax also works with Atomic, a digital financial platform designed to manage online payroll transactions.
Lindsay Davis, head of markets at Atomic, said, “Every year, tax payers receive more than $350bn of their own money back in the form of a tax refund. That would be the thirteenth largest bank by consolidated assets, untouched by tax payers who may need that money in a pinch,” said “This unique solution is yet another way our payroll connectivity is unlocking the power of the paycheck.”
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