IRS Notice: Penalty Relief for New Remittance Transfer Tax Deposits (IRC §4475)

The IRS published a notice providing relief from failure to deposit penalties for the new 1 percent excise tax on certain remittance transfers for the first three calendar quarters of 2026. The notice establishes a transition period allowing remittance transfer providers to avoid penalties if they make timely deposits and pay any underpayments by the due date. The new tax is effective Jan. 1, 2026, and applies to remittance transfers involving cash, money orders, cashier’s checks, or similar physical instruments. [IRS Notice 2025-55, (Oct. 7, 2025)]

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