Requiring Excise for Migrant Income Transfers Act” or the “REMIT Act.
Sponsored By: Representative McGuire
Introduced
Summary
Raises the excise tax on remittance transfers from 1% to 15%. The bill also creates a narrow exemption and a refundable credit for verified U.S. senders, and it adds new reporting and penalty rules for remittance providers.
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- Families and individual senders: Transfers that are not exempt or not verified as from a U.S. sender face a much higher excise tax, making remittances substantially more expensive for many households.
- U.S. citizens and nationals: Eligible senders who use a qualified remittance transfer provider and who are verified can avoid the higher tax and claim a new refundable credit equal to the remittance tax paid, but claimants must provide Social Security numbers and documentation to substantiate the tax and required certifications. The credit applies to taxable years ending after December 31, 2025.
- Remittance providers and industry: Providers must collect and remit the higher tax, file new returns under section 6050BB that report transfer counts, values, and tax amounts, furnish statements to recipients who may claim the credit, and face expanded penalty rules and anti-conduit provisions to limit avoidance.
The amendments take effect as if included in section 70604 of Public Law 119-21.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Refund or exemption for U.S. senders
If enacted, you could avoid the remittance tax if your provider signs a verification agreement and confirms you are a U.S. citizen or national. If you do pay the tax, you could claim a refundable income tax credit equal to all section 4475 tax you paid that year. To claim, you would need to list required Social Security numbers and show you paid the tax and gave the provider the needed certification. Providers would have to file reports and give statements to support claims, with penalties if they fail. The credit would apply to tax years ending after December 31, 2025; other changes would take effect as if included in section 70604 of Public Law 119-21.
Much higher tax on remittance transfers
If enacted, covered money transfers would face a 15% excise tax, up from 1%. The tax would apply per transfer. Providers would send the tax to the IRS and could pass the cost to you. The change would take effect as if included in section 70604 of Public Law 119-21.
Sponsors & CoSponsors
Sponsor
McGuire
VA • R
Cosponsors
Rulli
OH • R
Sponsored 9/30/2025
Roll Call Votes
No roll call votes available for this bill.
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