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 at the time of transfer, while the remittance provider collects it and remits it quarterly to the IRS. Transfers funded by bank accounts, debit cards, or credit cards are excluded, so taxpayers should review payment method records alongside Travel expenses and cross-border payment documentation before filing.
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