The REMIT Act increases the federal excise tax on remittance transfers—money sent abroad by individuals—from 1 percent to 15 percent. However, the bill includes a significant exception: U.S. citizens and nationals who send money through registered providers can avoid this tax entirely. To claim this exemption, qualified money transfer companies must verify the sender's citizenship status through an agreement with the Internal Revenue Service. Additionally, the bill creates a refundable tax credit that allows U.S. citizens and nationals to recoup any excise taxes they pay on remittances by claiming the credit on their annual tax return, provided they can document the payments. The tax credit provisions apply to tax years ending after December 31, 2025, and the bill requires money transfer providers to report remittance transaction details to the IRS for compliance and verification purposes.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.