Guidance on New Tax on Remittance Transfers Issued by IRS (1)

The IRS issued guidance on the 1% tax on certain remittance transfers that was included in Republicans’ massive tax law passed this summer.

Notice 2025-55 on remittance transfers details how Treasury will provide relief from failure to deposit penalties for the first three calendar quarters of 2026. Tuesday’s guidelines are some of the first related to remittances, money many immigrants in the US send to relatives in their countries of origin.

Lawmakers imposed the1% excise tax on all remittance transfers sent from an individual in the US to a recipient in a foreign country.

The tax on the sender is ...