Summary of Excise Tax on Remittance Transfers Proposed Rule
Updated 07/13/2026
The Internal Revenue Service (IRS) and Treasury Department issued a notice of proposed rulemaking to implement the federal excise tax on certain remittance transfers under Internal Revenue Code Section 4475 (26 USC 4475). The statute generally applies to certain remittance transfers made after December 31, 2025. The proposed rule may have limited direct impact on banks that only permit consumer remittance transfers to be funded from deposit accounts or other non-taxable funding methods. However, a bank may have greater exposure if it accepts cash, money orders, cashier’s checks, traveler’s checks, or cashed-check proceeds to fund consumer international wires or other remittance transfers, or if it initiates a remittance transfer immediately after a transaction in which the customer purchases a non-taxable funding method, due to the anti-avoidance rule.
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