What is the Remittance transfer excise tax?
The remittance transfer excise tax is a 1% federal tax under OBBBA Section 70604 on certain cash-funded money transfers sent after December 31, 2025. The sender pays the tax, while the remittance provider collects it and remits it quarterly to the IRS. Transfers funded by accounts, debit cards, or credit cards may be excluded. Taxpayers should keep payment records with Individuals files or business entity records and tie deductible travel, reimbursement, or foreign payment activity to Travel expenses only when facts support it.
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