# 2026-07085: IRS Eyes Tax on Your Family's Money Transfers Abroad 2026-07085, Excise Tax on Remittance Transfers, is a Federal Register proposed rule from Treasury Department, Internal Revenue Service published 2026-04-13, effective 2026-01-01; deemed significant under Executive Order 12866; PRIA reads it as touching household money (as of 2026-11-04). - Canonical: https://policyrisk.com/federal-register/2026-07085 - As of: 2026-11-04 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-07085 - Title: Excise Tax on Remittance Transfers - Type: Proposed Rule - Agencies: Treasury Department; Internal Revenue Service - Citation: 91 FR 18797 - Published: 2026-04-13 - Effective: 2026-01-01 - Comments close: not stated - Significant: yes (OIRA_API) - Touches household money: yes - Regulation identifier numbers: 1545-BR98 - Last updated: 2026-11-04 ## In one line IRS Eyes Tax on Your Family's Money Transfers Abroad ## Summary Starting January 1, 2026, certain companies and people who send money transfers to others will face a new excise tax. The IRS is proposing clear rules on who pays this tax and how it works, so everyone knows what to expect. If you’re involved, get ready to follow these new rules and share your thoughts by June 12, 2026! ## Abstract This document contains proposed regulations that would provide rules and definitions related to the excise tax imposed on certain remittance transfers that occur after December 31, 2025. The proposed regulations would affect certain remittance transfer providers and certain individuals sending remittance transfers. ## Effects PRIA read - 1% Tax on Certain Remittances: cost, medium. Starting January 1, 2026, a 1 percent excise tax applies to certain remittance transfers that occur after December 31, 2025. The tax is paid by the sender, and remittance transfer providers are required to collect and remit the tax quarterly to the IRS. - Providers Must Collect, Deposit, Report: cost, medium. Remittance transfer providers must collect the 1 percent tax from senders and report it on Form 720 (Quarterly Federal Excise Tax Return). Collectors are required to remit the tax quarterly and make semimonthly tax deposits under existing excise procedural rules. - Which Payments Trigger Tax: mixed, medium. The tax only applies when a sender funds a remittance with cash, a money order, a cashier's check, a traveler's check, or a similar physical instrument. Remittances funded with a debit card or a credit card issued in the United States, or funded by withdrawals from certain financial institution acc… - Check-Cashing Treated as Cash Funding: cost, low. If a remittance transfer provider or its agent cashes a personal or business check payable to the sender and the resulting funds are used to fund the remittance, the transaction is treated as funded with cash and is taxable. Settlement of a money order, cashier's check, or traveler's check by the i… - Safe Harbor Removed for Low-Volume Vendors: cost, low. The proposed regulations do not adopt Regulation E's safe harbor that deems a person not to be a remittance transfer provider if they provided 500 or fewer remittance transfers in the previous and current calendar years. As a result, low-volume vendors could be treated as remittance transfer provid… - Tax Base and Anti‑Avoidance Rules: mixed, low. The taxable amount is the amount that ultimately will be transferred to the designated recipient, which includes promotional bonuses but excludes service fees, State taxes, charges not transferred, and the remittance transfer tax itself. Transactions entered into principally to avoid the tax may be… - Temporary Penalty Relief for 2026 Deposits: benefit, low. Notice 2025-55 provides relief from failure-to-deposit penalties under section 6656 for the first three calendar quarters of 2026 for the remittance transfer tax, provided remittance transfer providers satisfy the reasonable cause exception under section 6656(a). ## Related documents - [2026-20447](https://policyrisk.com/federal-register/2026-20447): Transparency in Coverage, 2026-10-06 - [2026-20277](https://policyrisk.com/federal-register/2026-20277): Federal Scholarship Tax Credit, 2026-10-02 - [2026-20027](https://policyrisk.com/federal-register/2026-20027): Trump Accounts, 2026-09-30 - [2026-20026](https://policyrisk.com/federal-register/2026-20026): Trump Accounts, 2026-09-30 - [2026-18219](https://policyrisk.com/federal-register/2026-18219): Car Loan Interest Deduction, 2026-09-08 - [2026-17622](https://policyrisk.com/federal-register/2026-17622): Federal Independent Dispute Resolution Operations; Correction, 2026-08-28 ## Sources - [2026-07085 on federalregister.gov](https://www.federalregister.gov/documents/2026/04/13/2026-07085/excise-tax-on-remittance-transfers) - [2026-07085 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-04-13/pdf/2026-07085.pdf) ## Related - [Previous: 2026-07061, Hazardous and Solid Waste Management System: Disposal of Coal Combustion Residu…](https://policyrisk.com/federal-register/2026-07061) - [Next: 2026-07101, Airworthiness Directives; Airbus Helicopters](https://policyrisk.com/federal-register/2026-07101) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-07085 (as of 2026-11-04).