Excise Tax on Remittance Transfers (REG-114499-25)

On July 4, 2025, the One, Big, Beautiful Bill Act added a remittance transfer tax to the Internal Revenue Code (section 4475). The remittance transfer tax imposes a one percent tax on remittance transfers made after December 31, 2025, for which the sender provides cash, a money order, a cashier’s check, or other similar physical instrument to the remittance transfer provider. These proposed regulations would clarify how the remittance transfer tax is applied, including by specifying the tax base and determining the full scope of “other similar physical instruments.”