The REMIT Act establishes a 15 percent federal excise tax on remittance transfers—money sent from the United States to recipients abroad—effective January 1, 2026. The tax would be collected by money transfer providers from the sender at the time of the transfer and remitted quarterly to the federal government. However, U.S. citizens and nationals sending money through participating providers would be exempt from the tax, and all U.S. citizens and nationals could claim a refundable tax credit for any remittance taxes they pay, effectively negating the tax burden for Americans. Remittance transfer providers would be required to report transfer information to the IRS and face penalties for non-compliance with reporting requirements. The bill uses anti-conduit rules to prevent senders from evading the tax through third-party arrangements.
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