REMIT Act
Sponsored By: Senator Eric Schmitt
Introduced
Summary
Creates a 15% excise tax on remittance transfers. The bill would also create a refundable federal income tax credit to offset that tax for verified U.S. citizens and nationals and add new reporting and liability rules for providers.
Show full summary
- Families and senders: Non‑verified senders would generally pay a 15% tax on each remittance transfer, collected by the provider at the time of transfer.
- Verified U.S. citizens and nationals: Eligible taxpayers could claim a refundable credit equal to the remittance tax they paid, but must include Social Security numbers and prove the tax payment on their return.
- Remittance providers and compliance: Providers must collect or bear secondary liability for unpaid tax, remit taxes quarterly, file an annual report with sender names, SSNs, and amounts, and furnish statements to senders; the bill adds penalties for reporting failures.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Refundable credit for excise paid
The bill would let eligible U.S. citizens or nationals claim a refundable tax credit equal to the total remittance excise taxes they paid in a taxable year. The credit would be claimed on returns for tax years ending after December 31, 2025. To get the credit, you would need to include required Social Security numbers and prove the excise tax was paid and tied to the certification information given to the provider.
New reporting and tax rules for providers
The bill would require remittance companies to file annual reports with the IRS about transfers and excise taxes. For credits, providers would report sender names, addresses, and Social Security numbers and give written statements to those senders. The bill would add penalties for failures to file or furnish these reports. It would also treat some remittance arrangements as financing transactions for anti-conduit tax rules, which could change tax treatment in multi-party deals.
New 15% remittance tax and exemption
This bill would add a 15% excise tax on each remittance you send after December 31, 2025. The sender would generally pay the tax and the remittance company would collect and remit it quarterly. If a remittance provider makes a written agreement with the Secretary and verifies you as a U.S. citizen or national, the tax would not apply to that transfer. If the tax is not collected, the provider could be held secondarily liable.
Sponsors & CoSponsors
Sponsor
Eric Schmitt
MO • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in