IRS Proposes Rules on Excise Tax on Cross-Border Remittances (1)

The IRS Friday proposed rules for an excise tax on remittance transfers, which will impact individuals transferring money abroad.

The rules (RIN 1545-BR98) detailing the excise tax are meant to increase oversight in the remittance sector. The 2025 tax-and-spending law created a 1% excise tax on remittance transfers from senders in the US to recipients in foreign countries. It applies for transfers made after Jan. 1.

The proposed rules provide definitions on cash, consumers and remittance transfer, as well as providing when the remittance transfer tax attaches. The IRS also details how to handle transfers using personal or business checks, ...