Companies Sweat Out Cross Border Remittance Tax as IRS Rules Lag

Companies that help taxpayers send money abroad are still figuring out how to comply with a new excise tax on those transfers, even though it’s already in effect.

The 2025 GOP tax-and-spending law created a new 1% excise tax on outbound money transfers from US accounts starting Jan.1. Providers like banks, credit unions, and money transmitters are tasked with collecting the tax from customers, and they’re required to start filing returns on the collections to the IRS by April 30.

Four months into the life of the tax, financial institutions are collecting money from taxpayers without any formal rules from ...